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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Committee on tlrancn uroup & ~ ain Banking ( ar 2 - ar 19 1930) Branch Banks 421.11 END KIND OF MATERIAL OR NUMBER NAME OR SUBJECT 421.11 Committee on Branch Group & Cha.in Banking DATES (Inclusive) Mar 2 - PART NUMBER 2 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SHEET ar 19 1930 II lAarcl: 18, 1930 St. TO: Federa l Roscrv e 3oard SUEJ::::CT: 6526 zre.nch , c:;.1ain and Group :Banki- 6 FRO;.:: 'Jo have no,·: comple ted the ta'oulc> tion of the data receive d er from the Federa l reserve ag0nts on tne above subjec t as of Decemb chain , branch of summary a th heret:i 31, 1929, and there is presen ted and grou:;;i bankin g as of that date·. Detaile d s ta tis tics appear in accomp anying tables, and our records on branch , ch9in anQ 6 roup banl-:in g give furthe r data with respec t to individ ual banks and individu al branch es . Exp-8ri onco ¼~tb our branch bankin g record durin 6 tho ,ast throe years loads us to believe that it is substa ntially comple te and accura te, oven as to nonmember b~lli<s , In the case of the chain and group bankin g statist icG, tho i_.)rcsont compil ation is probab ly the most comJlo to that has fou::; far becor:10 availab le, but due to tho difficu lty of obtain ing infor,.1 ation on this subj,)c t it is quite likel;,,· that it docs not include a few si:iall chains for which no informat ion is availab le, and it may not i~clude all the oanks in so~e of the groups or chains . It is also possib le thtt the manage that r:iont or contro lling intere sts do not r0bard so1ne of the ban1~s . are include d in our figure s as consti tuting grou2 or chain systJms On the whole, howGvc r, foe infor:na tio!1 as submi ttcd on chain and group banking is believe d to bo subs t-..ntia lly correc t. Tho materi al is presen ted under three genera l heads . The first part relates to branch , chain and _;ro.x_:, bankin g ta.ken as a whole, the second to chain and 6 rou] banl:in b alone, and tno third to branch banking . o accoun t is ta.ken in this .nc1.1orandw.J of iforris Plan .,anks or small loan agenci es which operate in a n-w.1ber of state.,, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis !'.arch 16, 1930. St. 6526 M-S;::OR...:Ji!DJM on BEA~:CF, c:~rr A:.1ID GROtJP BAKIIN'.} PRF.PAR,"J) FOT-l :1ITT IN1c0tr.:AT int1 OF TE:a; FEDE.ct.AL RE3EFVE BOARD. The te.bulation of tb '" d"ta received frjrn the Federal reserve agents on the above subject a.s of Decerr:ber 31, 1929, has been comnleted and there is p~esenteJ. }iere.ri til a FU:L:1ary thereof as of that datA. Exnerience with our hranch tanl<: int-.: rE,cord during the past three years leads us to believe thrt it is substantiallJ ccm-::,lete and accurate, even os to nonmember ba·1ks. Tn the case of tr.e chein c:1,r d group lanking statistics, the ".)resent corrtr)ilat ion is probaoly the most cop--.~ ete that has thus far become available, but due to tbe dFfi:;u.lty of obtaining infun1ation on tl~is subject H is quite likely th:1t Lt J.oes not include a few smal 1 cha.ins for- -wJ-:ic> no information is c:1vaiJable, and it ,nay not inc:lude all the b9 r,ks in some .;f the grouos or chains. It is also possible th'3.t the ue·1cJ.gernent or controlling interests do not rcga~u some of the banks that are includ.ed in our figures as constitutin~ ~roup or chain systc .s. On t~e whcle, however, the inf'oy,;uation as sub11itte1.1 on chain and groun oanking is believed to be substantially correct. The ne.terial is oresented under t::.ree general heads. The first part relates to branch, chain ar,d group oanking taken as a whole, the seco:::id to chain Lnd group banking alone, ar.J the third to branch banking. No account is talcen in tLi r; ,:emo r,:tndum of l·.: orri s Plan ban;r.s or small loa.n agencies wtich o,:erate in a number of states. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis > General _Surn..l'l.I~ . Accordi _g to staListics just co~1iled, faere were in operatj_rrn b the unite,i States at t11e end of 1923 , 24 , 645* -oanks and 3, 5~7 1,,~;.i.nches, or a total of 28 , 192 banking offices . Of tLis total of a:pprvximDtely 28,200 bar,king offices , tr.ere ,'lere 6 , 353 banks and branches that belonged to oranch b2.nli:: s:rst1ms, to c:1ain or group bank syster.as , or to both . T..is le· ves 21 , 839 banking institutions that might be definitely termed as 11 inde.~j0nd.ent unit banks" -- havinc no bra::iches and being in no wa:r connect0d wi t:i other banl•:s thro11t,;h chaL1 or group affiliation . As a measure of the banking resources of the barH:s fallin 6 into the different categories , we have te'uul..,ted th<3 fie;U1·0s of total loat1s and investments . On this basis it a:)-~)eo.rs that at the e'!'ld of 1929 all ban}:s in the country !1ad total loans and L1Vestments of approxim-:i_tel:' $58 , 500 , 0uO,OOO* . On tha samG date the 'uranch , chain a d .::;rou.9 'uariJ:ing systems, err.bracin 5 a total of 6 , 353 banks "lnu. branches , had total loans and investments of a:;>~1roximately $30 , 000 , 000 , 000 . In other words , the banking resources of the branc:h , group and chair systems were more than one-half the total of all b:~.nks in foe cou."ltr:r . The branch ban:.-:ing systems at the end of 1929 , taken alone , embraced 822 banks and 3,547 branches with aggregate loans and investmen ts of . 25 , 100 , OOC ,000, but these figures include 119 banks with 1 , 415 branches and loans and LNe3tm:rnts of $6 , 300 , 000 , 0CO tl1at were also report0d as belon 6 in. 6 to bank grou:_:>s or C1 ,.,i 1s . Thern ·,ere 287 chein or group bank systems report0d in existence at the end of embracing 2 , 103 banks rri th loans and. ir_vost,.10nts of $11,200,000 , / ~8S1,; fi 6 uros, like those givon for tl G br:1.rch syste, s, inclu-le a. certain amount of du:plication, thet is to say, they inch~.dG 119 barL.b:s with 1,415 brnnches and loans and investm.... nts of $S,3oc,ooo,oco , ",hich ,,,ere ro}_)ortod as cclonging to chain or grow? s?ste1,1s . This du9licntion is, l o,·,cvor, eliminatod fror.1 the combin<3d statistics ,__iv on in th0 two .._:,r0coding :?aT a graphs . d~~9, Tho tablo on th" follo rir!J ::_:>Rgo s.10'"'S th0 numJ..ir ant.: loans c::.nd investments of branch, chain and gro1.1::, 'i:).,n,nn 6 sJst.::ms 1,t the one.. of 1929 , in co~Jarison with figures for ell banks in t 10 c"unt •~r . *Excluding :9rivat"' ban!-:s not ";1I1d.::r state su:9.:3rvision . For two stat0s tho DocorJbcr fibur0s for state ban1-:s aro rjot availabl.,; , and in th~so ca sos the latos t avai lo.bl0 abstract W"'.S us.3 l. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 - NUMBER .AND LO.ANS .AlJD HTV:SST:.i.ENTS OF ALL B~'--1"\JKS DJ THE UNIT3D ST.Ams .AND OF BRANCH, CHAIN .A:rn GROUP :aA~\K SYSTE.:t:S AT TI-IE END OF 1929 Number of banks ( or branches) .. . 1,984 4,913,000,0 00 119 •6,264,000,0 00 3,547 . Banks that belong to chains or grouys and operate branches: . Head offices (parent banks) 28,192 ( a) (a) $58,461,000 ,000 24,645 All banks (head offices) in United States**· . .•..... Branches . . Total -- all banking offices. Banks that belong to chains or groups but . • • • • • operate no branches . .. Iran.che s . . . . . . . . . . • . Barr.1:: s that do not belong to er.a ins or groups but operate branches: Head offices (parent ban...'l{s) :Branches .• Independent u..~it banks (banks that do not belong to chains or groups and do not operate branches) . • . • • • . . . . • . • . Loans and investments 1,415 ( a) 703 2,132 *18,839,000 ,ooo 21,839 28,445,000, 000 (a) *Includes branches, separate figures not being available. **Exclusive of urivate banks not under state supervision . For two states the December·· figures were not available for state banks, and the latest available figures were therefore used. (a) Separate figures not available. Branch, Chain and Group Bankir.g Areas. T:,J::en gene rally and looking at the situation from the standpoint of the nmnber of banks involved, chain and group banking exists on the widest scale in those states in which branch banking is prohibited entirely, for example, in !·. 1innesota, North Dakota, Kansas, Iowa, Illinois, Oklahoma and Texas. It has, however, grown to considerable pro:portions in so-called restricted branch banking states -where branches may be established only in the head office city, notably Michigan and New York. From the standpoint of banking resources controlled by the members of the groups and chains, chain and group banking is also found on an extensive scale in certain additional states, including pa.rticularly California, Florida, Georgia and lJontana. ~sis gen~rally known, chain and group banking has had i~most rapid development in recent months in the northwester n states, but considerabl e activity has been reported in so,ne of the eastern and southern states. There are relativel:r few states where it does not exist to a substantial extent, but the predominant chain or group banking area rJaY be said https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 to comprise the middle western, western and central states. There seem to be at present very few legal restrictions on the formation of bank groups or chains, and the continued growth of this system, which might be termed indirect branch banking, is thus possible generally throuJ10ut the country. The growth of branch bankin 6 , on the other hand, has been restricted by law in many states, and the brancn bankin 6 area has not c:i.1an 6 ed materially in recent.years. State-wide branch banking has, of course, had its greatest development in California, but it has also developed to a considerable extent in Maryland, North Carolina, Rhode Island, South Carolina and Virginia. The other states embraced in the principal branch banking areas are those in which the establishment of branches is restricted as to location, including New York, Michigan, Ohio, Pennsylvania, Louisiana, New Jersey and Massachusetts. The branch banking area is, therefore, much less extensive than that in which chains or groups operate. It includes most of the eastern states, and Michigan, Louisiana and California, but very little of the central and middle western sections of the country. 1iember Banks of Federal Reserve Sys tern. The branch, chain and group banking systems, which in the aggregate had approximately $30,000,000,000 of loans and investments at the end of 1929, included 923 national banks with loans and investments of $11,800,000,000 and 278 state bank members of the Feceral Reserve System with loans and investments of $10,800,000,000, or a total cf 1,201 member banks with aggregate loans and investments of $22,700,000,000. These banks therefore controlled approximately 63 per cent of the banking resources (as measured by loans and investments) of all member banks of the Federal Reserve System. In some states the member ~Janks that operate branch systems or belong to chains or groups control the greater part of the banking resources of all of the member banks in the state, as is brought out in table No. 4 submitted herewith. It will be noted from this table that in the following states the loans and investments of member banks that operate branch systems or belong to chains or groups constitute more than one-half of the loans and investments of all member banks in the state: California DeJaware Dietrict of Columbia Florida Georgia Kentucky Louisiana https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iiiaryland Massachusetts I:hchigan iiiinnesota iiontana New Jersey New York North Dakota Ohio Rhode Island South Dakota Tennessee Washington . - 4 Ta"'Jles. For reference _::,ur -• oses, t .. e follo•r.i.n..; tg0les rel::- tin,; to branc,1, chain an C:. rou:•? ~Jan:::in__, are a tt3,checl: ':i.aole 1 - Number and lo 3n s and. investnents of all banks and branches in the Uni teG. States .2nd of 0rancl1, chain and 6 rou:p b ,.,_U:;:in 6 s~rste1s, Dece.aber 31, 1929, El_ clesses of oa~:s. 2 - lTum'uer of 'uan: s ::nc' 0 rai1ches and nu..nber of branch, c~12_in and ..;rou•) 'u ankin._:. s~rsteins, o;;r states, De ce,-1-..,,er 31, 1923. 3 - Lo2ns and invest..1ents of a.11 ba.n~cs and of branch, chein and. "" rou.._J O"nk in 2, syste_.1s, b:,, states, Dece~ ~er 31, 1329. 4 - Number a.nd loans "nc.: invest..ients of all member banks in e ncl1 sk te c'Il("i. of u1e•.10er b2nk:s t11at o·Jerate "branche s or '.Jelou~ to ~ro u:J s or cha.in s, Decei:1ber 31, 1929 . i.:ore c1.etailed infer.nat io n on chcin anC:. ~, rou__) b,nkin., anC. on brancl1 b2n!: in 6 is g iven in the se , r ,te sections rel o tin-:, to these subjects. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 Definiti on . When the Federal reserve a.gents were request elII to furnish the :Board :-,i th reports on chain and erotL:_1? banking , t:he term chain a!ld group banking" ,vas defined as co~?risi ng those syste1r.s "in wnich any person, group of persons , ~artners hip, associa tion or corpora tion has ac~ual or potenti al control over t~e operatio ns or policies of three or nore ba:1king uni ts, each v,orl::in 6 on its Jwn ca.._)i tal .'.1.Ild under its O\'ID personn el . " It is on this basis foat the statisti cs submitte d herewith have been prepared . It should be realized , of course, that under an:'Jr definition of the term, mar.y difficu lties ~resent themselv es in endeavo ring to make a coffipreh ensive survey of the subject , particu l~rly where nonmember banks are in-:ol ved. The sourc e s of the informa tion obtained -oy the Federal reserve agents include examinc: ltion reports of member Jank:s, nationa l bank examine rs, state ucnKin 6 departm ents, the manpgom ent or controlling .i.nt,3res t of some of the _;rOU-2)S , a-YJd in some instance s press reports or similar informa tion. No attempt has been made in the preseYJt tabulati on to distingu ish between "chain ban1:::ing" and "group banki nl," but it is of interest in this connect ion to note that t:1e Comptro ller of the Currenc: r, in a statement made before the House :Bankin 6 and Currer.cy Committ ee on February 25 , made a distinct ion between the two terms as follo,.,s : https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T'ne term I chain banking I has been in use for many years in this country to describe a conditio n in which a nunber of banks were o,med or control led by the same individu al or by a group of individu als . These so - called chains were situated vecy largely in the rural distric ts and the m0mber banks of the chain were princip ally small country banl.s. This coaditio n was and still is quite ,revale nt in the agricul tural regions of the West and South . Uany of these chains have co,.1e to disacter through the failure of all of the banks \'/hich constitu ted them. During the many years this type of bank o •me rship has been in exi s tcnce it was not conside red as a trend toward a fundame ntal change in our banking system nor did it rcla te itself to the question of bra~ch banking . On account of the failures of several of these chains the term 1chain banking ' began to car y ~ith it an element of disfavo r . "The term 1group oanking I is of very recent origin and is bcin6 used to describe what appears to be a major movemen t in our banking system. The ~rincip al factor in group banking is that each group is centered around a city or metropo litan bank through means of a holding company which ovms the majority of the stock of each b~nk thereby creatin 5 a syst8m of ban~s more or less integrat ed in managem ent with the central bank of the group . Its one common factor with the older t;,rpe of chain banking is th3. t several count~, 'uan,,.s m-...,y be o·Nneci. by a single agency . In this discussi on, therefor e, I shall use the term 1 group banking 1 to mean the ovmcrsh ip und sor.10 elcrr:ent of operatin g control of several banks throu6h thG :;1cdium of a bank holding company ." 11 St,6526 - 6Summery for the United States. As has o.lr,;e.dy b,,.,n not Pd, som"' of th~ b2nks th/-"t belong to chains or groups Fllso 01xffat<J brench-"s, in fe,ct the two l=•rgPst brPnch syst"'!ms -- th".1 'Br'nk of Itnly :National Trust & Savi!lgs Associ::tion, San Frr.ncisco, l'nd thP Be.nk of .AJn,'"'rica of C1:1.lifornia, Los Ang"l"s, with c total of 447 branchns, c.re includE"d in thr, Tr2nsamnico Corporntion gr oup of New York. If r-,lJ. ch2in ond group banks o.rP includ"'d, r.h-" th"'r or not they 09er,1t8 br3.nch<>s, th., stetistics show thri.t D.t the end of 1929 th~r"' w9r<> 2o 7 bank chnins Pnd grouos in the Unit ;;d Stc.t :'S "mbrn.cing 2,103 ban}:s, as compnr~d Titµ 275 chains and groups P-mbro.cing 1,821 b.s.nks at th"l "'nd of June. Thi:" 2,103 ben..1.{s rPpcrt ~d us bAlonging to ban{ chains or groups at tt~ 0nd of last yPar constituted about onr>-twelfth of th,., brnks inooBE' COUJ1try 1 'l"hilo thrir loans and inv~stm"nts wr'r"! about $11,200, 000,/or nearly one-fifth of the aggregate l oans and inv0s tm1:mts of nll ban2.rn in the United Stat0s. Sumrrary by Classes of Banks. Nationnl bor.. 1rn rn.p"rtr:d as mewb rs of bnnking cho..ins a.nd grouos nwnbered 802 at the end of December as compared with 645 in June, state bank members 136 compared with 111 in June, and nonmember banks l,lb5 compared with 1,005 in June. Loans and investments of the national ba~{S belonging to the ban..1{:ing chains and grouus wer~ apuroximately ~5,900,000,000 or over one-fourth of the total for all national ban~s, while loans and investments of state bank members belonging to the g roups agg re gated $3,400,000,000, and of n~nmember ban:-cs $1,900,000,000, 0 The followin g table g ives a summary compc:rison for th e country e.s a whole, by clr1sses of banks, for June and December 1929: lJUY!lb,::,r of b1?n1cs Lo~ms and investmPnts Members Of members Total of grouus Of all of groups and chaim banks and chc'ins ** (In millions of dollars) All classAS of bE'n:-cs December* June National ba.nks December June State bank members December June Nonmember ban1;{S December June t:t.n.':B<m OF GROUPS ~'D December June 24,645 25,110 2,103 1,821 58,461 58,474 11,177 8,300 7,403 7,530 802 b45 21,5c4 21,457 5 ,908 4,159 1,119 l, 177 136 111 14,350 14,254 3,397 2,509 16,123 16,403 l,lb5 l,Ob5 22,527 22,763 1,872 1,632 c-:AHTS : 237 275 *For 2 states the Decem'.)e r figures for state han~-cs are net s.vai lAble and the lat,,,st available abstracts w"'rP us<>d in these cas<>s. **Eased largely on condition firures publis~ed in J uly 1929, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis (St. 6520 7 Principal C:1ain c:..nd Grou,, 3~kirg Statos. Chain nnd 6 roup be~king has reacn2d its greatest dove;lop,no:r.i. in th0 north,1estorn stat.Js, but it embraces a consider&blo ::nun1:Jor of be:,ks an:i a relatively largo :proportion of thG banking resources in ma:w oth:.H states. There wera, as a matter of fact, 25 sbtos at the end of 1929 in v,.i1ich CDain and. grou:9 banks consti tutod a subs tan ti:ll pn.rt of tho nur.1bor of bMks or of tho banking resources, as indicetod in tho following table: State Nu:uber of bc:.uks Mcmbors of Total groups and. chains Minn0sota Michigc..n North Dal::otn Now York Kansas 1,046 743 412 1,127 1,069 Iowa Illinois Oklahoma Texas Washington 303 135 and. ir_vostmcnts Of :nemoors of Of all grorip s a:1d banks chains* (In ;oi.11 ionR of doll::-rs) LO-':IlS gg 901 2,021 112 17,222 4o4 584 1,262 58 2,011 46 1,257 1,765 617 1,300 340 37 34 85 s4 75 732 3,802 401 1,036 460 90 1,212 103 104 189 so4 387 568 960 415 73 61 60 53 72 359 137 2,338 917 193 62 47 396 212 50 California Massachusetts Montana PennsylvW1i11 Florida 437 450 195 1,560 235 49 45 45 48 4o 3,420 4,225 144 5,703 1,528 871 81 803 134 Idnho Oregon Missouri Utah Georgia 137 234 1,277 104 405 41 36 36 26 22 31 260 1,199 162 334 37 32 158 50 166 All other states 6,787 229 2,103 11,535 **50,461 841 11, 177 192'). Nebraska South Dakota New Jorsoy Wisconsin .Arkcnsas Total 114 102 258 I "'Based largely on condition fi;uros pui:llish3d in July **For 2 states tho Doccmbor fi_;·u:res for s t..,to benks e.ro not ~rot available and the latest avo,ilc•blc a.ostracts 1vcrc used in those ceses. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ... g .. Recent Devel·um rnt'3. '.Ihe first sm·veJ of chain banking made by the Federal reserve agents for the Federal .Reserve Board was in Decemce r 1922, the second in June 1926, the third in June 1928, and the lr1st complete survey in June 1929. Since t~at time monthly sup::_;lements on changes in chain and group banking have been submitte d to the :Board by t~1e Federal reserve agents. 2.1he data submitt'3 d prior to June 1929, however , are not sufficie ntlv comvl8te to malce it possible to compare the present situatio n with that which ;xisted in earlier years, in fact even the fifs'U,res as repcrt-ed six months ago have since had to be revised conside rably. It is dm ing the last six ~onths, howeve1·, that group banking has been ex-.J?anding so rapidly. Increase s in the number of banl:s belongin g to chains and groups since June are confin0d largely to 9 states, a...11d most of tho gro~,th is tho result of the ra,id expansio n of a relativr .ly small nu;Jber of groups, notably the Northwe st Bancorp oration of }fJ.nneap olis ,,hich increase d from 20 banks in June to 92 in Decembe r, the First Bank Stock Corpora tion of Minneap olis froi:1 12 to 78, and tho Guardia n Detroit- Union Group a Detroit which was not in existenc e in Jun0 but corr._Qrised 35 banks in Decerilbe r. Tho number of chain and group ben.ks at the end of June and Decembe r in each of the 9 states in which tLJ princip al increc.se s occurred was as follows : Number of grou,-p or chain banJ,:s Increc>,se Juno to D1cerr.ber D,"ce:.'.!ber June Minneso ta Michigan North Dakota New York Washing ton Arkansa s Montana Massach usetts Kentucky Total 47 49 14 21 16 •17 13 12 12 201 308 135 n4 102 75 72 45 45 16 912 261 86 100 81 59 55 32 32 711 1 *Some of this increase ma~, represen t simply ban "s that 1•nre not known gbg to chains and groups. belo1 as to be or were not previou sly reported Prir.cip al Chains and GroQps. ~ecent months have witnesse d the r 8 pid 1 rise of quite a number of ban -c groups of t11e type referred to by tnr Comptroller in his recent stateme" 1t before t:te Committ ee on Bankin.; and Currency. This type of bank 6 rou:9 is gene rallj· centered around a city or metropo litan bank throug,'1 means of a holcii11b com::;ian~, which owns the majority of the stock of each bank. Example s of these newly fonned groups , which are the ones in which the greates t interes t centers at :>resent , are the Northwe st :Bancorp oration and t,1e First :aan";: Stock Corpora tion of r,~innecpolis, the Guardian Detroit Union Group of Detroit, the First lhtio 1alPeoples Wayne Cow1ty Group of Dctroi t, th8 ;-,:arinG lf.ici.bnd Cor;ora tion of Buffalo , and the First Wiscons in Nationa l E n:: group of l.~ilwa~{- Je. Some St. 6526 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 9 l'lf these groups have exp~ndeci tLeir fields of operations be;y-omt state lines and in one case beyond F3clerc1.l reserve district lines. 1.:ihe c~1ain systems which have been in 0xistencc for :·;ars, in most of which the control is held by one or more individuals and v1hich genorall;; ar0 composed of bc.n:::s in the rural com-:iuni ties, do not appe2r to have grown materiall~r in recent :nonths. The p rincipe.l grou:)s and. chains, wi fa the nunbcr and loans c:>.nd investments of ba."11>::s included tr.erein, arc as follows: Nar:io and address of .ra.nagem0nt or controlling interest Nw.1ber of ba rl:s in group or chain in Decemb0r --+-------- PRnJCI?).L GROUPS Northwest Bancorporati on First :Bank Stock Corp. Guardian Detroit-Union Group First Se cur it? Corp. Old Nationel Corporotion First National-Peoples Wayne Ctunty Group Southwest Corporation First l1ational-Old Colony Con. Marine Midland Corporation Transamerica Corporation First Wisconsin National 3e.n:::: Angl~-National Corporation First Securities Corp. First National Ben~ 102.ns and inv es t1ilcn ts* :hnnoapoli s, Minn. II Detroit, nch. Ogden, Utal1 Spokane, Wash. Detroit, Hich. Tulsa, Okla. Eos-::.on, ...ass. V :Buffalo, ,. .1.IJ. - • Jew York, ].Y. :.~ilwaukee, Wis. San Francisco,Cal, s:.r racuse, N. Y. Atlanta, Ga. 92 78 35 25 22 $339, 754,ooo 239,267,000 03, 996,000 34,723,000 32,931,000 21 21 20 19 705,032,000 77,753,000 568,312,000 42 ) , 436,000 1,418,361,000 168,466,000 146,13s,ooo 115,559,000 104,954,000 18 18 17 14 7 PRIHCIPAL CI-:.Arns Rogers Caldwell** Otto Bremer Foreman Family James F. Toy A. E. Sleeper Thurmond Brothers Geo. Wine;field Nashville, Tenn. St. Paul, Minn, C~1icago, Ill. Sioux City, Ia, :Bad .A.xe, Mich, Oklahoma Cit:,,Okla. Reno, Nev. 66 71 14 17 16 15 12 131,308,000 52,932,000 27 0,719,000 13,056,000 5,612,000 4,664,ooo 18,911,000 *Based largely on condition figures published in July 1929. *"'Includes 33 banl:s formerly reported in .A. B. Ben.:s chain of Arkansas. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 10 - Si ze of Ban1:ing Chains or J-ro'l"•JS . In order to he.we t:1e :ao2rJ' s record of chain "l.nd group b,m·rs include e 11 oankir.s ins ti tuticns t.r.r t might reasonably be classified. as constituting groups or chains , foe Federal reserve agents were requested to include groups comprising as few as three b· nks . .A.s s.1.own in t'?.ble 6 submi t ted herewith , there were at t e er.d of 1929 only nine chains or 6rou)s thut co,~rised more than 20 banks , and onl:, 26 additional groups that included from 11 to 20 banks . Foll owing is a distribution , according to tho number of bnnl:s i!'lcluded in the groups, of the 287 bank chains and ::,roups reported at the end of 1929: 0 Num'oer of grourys with -- 3$"1 3 janlrn 4- 6 barks 7-10 b,:,.nks +If!~ ~M 11- 20 b.'.ln1~s 21-30 banks Mo re than 30 b.:mk s 6- f /JfU I() -If#td P-ot1Y~ .._~iJ '" Total 287 'fyp~ of Chai!'ls or Groups . W'nile it is difficult in maiy instances to e bt2in definite inforr.1ation as to t :1.e dc 0 rce nnd method of actual or potenti:1.1 c0ntrol exercised. by tno .:i..,,nagem-... nt or controlling interest of the chc.ir..s er 0 rou::_:>s , three rather distinc t types have been r )Ortcd. as follows: 1. Control by a holding cor::?or.:::.tion which in the first instnnl.,e is g\,:nerally formed oy interests connactcd with one or 1aore of the principal ban.:s balon 5 in 5 to the cn::>in . 2. Control held or e xercised t:, the :>rinci_r:ml bpm in tho ro p , either through direct ownership of stock b!' such princi:.,--1 bank or through ownership '.Jir the s toc!chol dors or d.irec tors of such princip~l ban.~ . 3. Owr,crshiD of substnnti,,_l or controlling int3r..,st in .,_ nur.. er 0f ban rs by a single individno.l , fcmily, or group cf incliviciu.1.ls. At the end of 1929 there were 53 groups of t e first type , ~+ cf the second and 190 of the third, but this classificatinn according tr, type of ccn~rol is general cnly , because the reletionship between he banks is sur.h .?s to ma.t-:e it i.;possible in so.ne cases to :llake a definite classification . In one case, for example , a trust com·)anr whose stoc::: is entirel~, trusteed for the bencfi t of the s toclr.hold.ers of a n· tional ban 1: has organized an associate comnany, and the latter in turn owns a majority of the stock of a number of national and state 'oar~s . F1 ·ther.nor , the meth')d of control is so.. times changed to :-Jeet foe neP., s of the occasio1,, but regardless of how ci,ntrol is exercised it seems to ".::e quite evident t at in most of the recentl~r for;necl groq:is t:iere is cne p rticular metropolitan bruJ.k that exercises the dominetin 5 influence over the other ~,mks int e _;rn-p. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 Example s of ban!cs or grou]s t:1, tLll into eacl1 of the three classes abova mentione d, on the basis of tho Luonl8t ion r3)0rtod at thG enct of 1929, follow: Name end address of :nana,ge- mnt or control lin 6 interes t JITuuibor of b:c.nlrn in 6 roup or chc:i.in in Loans and investme nts* Dec om'be r 'J:rpe 1 - Control by holding cor~ora tion Northwe st Bancorp ora.tion Minneap olis, !Jinn. 11 First :Eank Stock Corp. Transam erica Corp. New York, N.Y. Guardia n-Detro it Union Group Detroit , Mich. II First Hat-Peo ples Weyne Group 1/iarine-M idlanc_ Corp. Buffalo , N.Y. First Nat.-Old Colony Cor~. :Boston, Mass. Southwe st Corpora tion Tulsa, Okla. First Security Corp. Ogden, Utah Old Nationa l Corp. Spokane , Wash. Type 2 - Control b;' 1Jrincip al bank illllerica.n Nationa l Bank Nashvil le, Tenn. First Nationa l Bank Chicago , Ill. Peoples Pittsbur gh Trust Co. Pittsbur gh, Pa. Hartfor d Conn. '.i:r. Co. Hartford , Cohn, First Natfona l Bank Tampa, Fla. Peoples Trust & Guarante e Co. Hacken sack, N.J. Fletche r Savings & Trust Co. Indiana polis, Ind. First nationa l 3an..1,;: Dothan, .Ala. Fi rs t nationa l Ban..1-;: Atlanta , G2. Union Trust Co, Pittsbur gh, Pa. Type 3 - Control b~r ind iv idll.8.1 or Otto Bremer R~gers Caldwel l James F. Toy .A. E. Sleeper Tnurmond Brother s Fo:ceman Family Geo. Wingfie ld o. s. Hanson of individu als Hinnea:p olis, ti:in~. Nashvil le, Tenn Sioux City, Ia. Ead .Axe, il1ich, Oklahom a Ci t2·, Okla. Chicago , Ill. Reno, Nov. Grand F0rks, N .D. (In thousand s) 92 78 18 35 21 19 20 21 25 22 339, 754 339,267 1,418,36 1 403,996 705,032 425,436 568,312 77, 753 34,723 32,981 15 7 6 35,470 512,669 167,180 37,186 21,682 25,427 23,926 e,686 104,954 45s,901 .71 6G 17 16 15 14 12 14 52,932 131,308 13,056 5,612 4,664 270,719 13,911 3,303 7 7 7 8 9 7 8 f:,TOU-J *Based largely on conditio n fi 6ures )Ublishe d in July 1929. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 12 - Invest, ent rrusts Sue::::ializine- in Ba"l' Stoc:···s. ·r11e oresent SJ.rv<>y does not incL,de 2n/ L1st&.nc0s ...:·e ·e a SJ.bstar.tial a.11ot:.nt OJ.. ban1c stoc1 i s o·,·ne1 b--:, en investment trust pnr.:,ly as an investment - vithout any control . Such casPs, t!:"rough thP acqu.isition of additional stoc!,, may of cours9 ,i:,ivP. ris"' to acti..;.a.l co:-:trol over a group of ban1-rn in the course o: time. l'hPre ts or.e srou9 inc:uded in th~ oresPnt comoil3tion th2t is D"r 1·.eos o: ti:is sort -- that o+- t:w 3-ola 1 en 31.crs rrc:1.cinf Corporation of 1Tev- Yor',;- v·:1ich at the end of 1•123 Tas reported as substantially c:ortrolli"lg 3 ban~s in Fer Y0r~, 1 1n Cali~orr.i.a, and l in P~nnsylv1,nie., •,-ith a.g[TPgate loans a· d inv"'strriPnts of <1:316,0')0,0,...,0_ 1 r 0 Suosidiar1.r Inv':!etrr.~nt anr. Fir:anc2. Co"TI )?niP_s bAlon in-.,. to Grouus. or Ch, inr. l'~P ste.t:.stics th;--,t r>r.:> hF>r" ures:,rt"d "e to ben ~s tret bolt"'rig to c:·ai11s or {'Touus do n0t includ i •w;:,stn·"nt ben'rine· ho,1s,.,r, joint stoc1: l·na Of'nrs, trust comn;:,ni. s "'!1g'£'l"d solFily in trust Ol?"retions, and so-c:c>ll' c.. comrr-rci::il ere-di t or finarc.., compani"s. Th<> °F"'O"rt·l rrs0rv-~ eg 0 r.ts •""'r:') r:ot r' su..,st"'d to list such inv~stri"'nt or finencr institutions in r-porting on ch ins end ~rouos , but in mf'ny cr30s so11" in::orl"'E>tion ?long this lin.., ·r,s :'1..<rviish"'!d. "<;;<:·min::ition of t11" rnnorts indic, t s t::::-,t th-- incl J.sion 0f suc:1 instituticns in tir e;rou-c is not ct rll -.mcommon, in fret t:i,;, indicdio:1S ·r thct "t 1-r.st sor:-"' of th.groups h,.,d d-":init--lr in n,ind th" or.a-&nizr-tion of sucb Sli.bsidi:-rv- inv..,st~--nt ~::1a fin"ncn compPniAS ['S 70Uld m~~n it oossibl.., for th--m to "ng2.g" in r>ll forms of :finrnci[ 1 op':r:--tions -·- not only comm"rciPl b!"'nk:int:;, s..,vi.!'gs b"rrt :-·nd trust oo".lr--tions, but r>lso in th" uno,"'nriting 0nd flot· tion of s"curity issu"s, furrishing of short-ti~" com~"'rcir-1 cr--dit for finr.rcing such uurch-"S"s rs t'Utorrobil-"s "r.d hous-'hold goods, --tc . 0 0 0 .Ar-. "'X"mplr of such "ffili' tions Pr' c--rt·,in subsidiPri•'s of thr ·rr,,ns."m:'! ric r> Cornor;:-tio,.., s!lo'.'·n in th· 11 .AlTJ·-ricrn Bl':'Jlr"r 11 of -:;,..,bru,"rY 20. This 6 roup , in ;,ddi tion to co:1.trollir.g on" b"n1, in r:i-rw Yor 1t EU-'d sr-v"nt""n in Cnliforni~ with agtrn~rt lorns ~~d invnstm"nts of ovnr $1,~00,001,~00 epp--!lrs to !'k"V, cortrol ov"r t 11 follcr~·i1:g instit-t.. . tions: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 r"tionPl '9r•n1d t:'ly Co·w· .....y .Arr..,ritrli,<\ C1..rportion Bcncf' d 1A1--ric:1. E' d 1 It·lir, 'il"::., It"ly B:-::1cc-rpri CE'-Bl.., ir Cc ruorr t ion Coruor"tion of A~..,ric:Prcific i-:'tion"l Fir0 Ir..surnnc0 Comnr,ny .3.:'n1 :i tr l:r )( ort.e-; rr Comor11y Cor.nl':-:y of Arr"'ric," II 11 Agri cul tur·'l Cr,..di t Ccvrcor,ny Crliforr..iP JoL·t Stcc1t L'.'nd B:i.n}!-- ( St . 652u 13 .l.noth cr instan ce is the G1a:cdi11n D,:itro it Union Group, winch o: in additi on to contro llin.; 35 ·bn.n:s ·.-,_;_tn lo2J1s and. Lwest ..11,nts ial $400,0 00,000 v,as report ed as co;1tr olling tn0 follo~i 11[, financ instit ution s: Gw.rd ian Detro it Co ..1 ''111~' Guard ian Detro it Co. of Calif. Guard ian Safe De~os it Co. Kean Higbie Company Union Com_xmy Union Ti tlo & Guaran t~r Co. na. tional Union Com•?ar:y People s ration r~l Com.Jany Now Union :Bldg. COiil)aTIY Guard ian Holclin g Com2any 0:1io-P enna Joint Stock Land :Sank Union Joint Stoc!: Lancl Bank Detro it II II II II II Jac':so n II Detro it II Clevel and Detro it n Susnen sion or Fe.i lure of Cil.'.'1.in and Group :Sanks. .,\. co,a."?B,.riso durded was recen tly made of tho :Soarc i's record of all b.:i.n:,.s suspen subing the :pcrio d 1921-1 929 d th lists of b,:,.n!-: chains and 0Toups 1929 n.nd mit t..Jd as of Dcce.,' Jcr 1922, June 1926, June 1928, and June of J_ty difficu the to Duo 1929. month ly sup_)lo ments since Juno ularly partic g, bc:nl:in group or chain 0.1 obtain in dofinit. .-3 i11fon 1ation susthJ of all st.ow not ma~, for t11c 0.s.rlio r yo['rs, such a. com,a rison on anf_ , chains or groups led p.:3ndcd b;::;:~~s that -.1oro mcmb.:irs of so-cal ed. r~?ort ,vero v1}1ich ban~:s ndeci th0 other :1"r:d, it ,t!.'1:' incl'J.d e so;ne ::;us::.:,e have ~, :l.t::!nt rn::ma~i as bclong int; to chains or groups , tnou,gh fao tho operat ed them entire ly ind.Jpo nde:1t1 -, of the other ban;.-.:s under sa::io c ontro 1 , 0 On foe basis of t.1~ best infor.~ 2tion .::ivailD bl0 , howev er, it ,000, rea:ppoa rs that [}. totd of 226 J"'!l.li:G with dcpo sits of $102,0 00 ions portod ~s bclong in~ to 50 diffor ont ch~ins , sus?en dcd operat do~)os its v1ith DDnks 61 r, nUlJ1b,3 this during tho ninc-'' .Jar i1eriod . Of This ncd. r0op.:3 tly ucn susseq of $35,00 0,000 were ro::ior t,.,ci .is h2.v in 0 c:;r ninc-:: the durinz ded co:.1pa ros with a total of 5,642 b-=,nKs suspen chain period with cieposi ts of $1,720 ,000,0 00. In other l']()rds tne ented repres banks t:1ct vere re:port ed. as h·wi.1 6 ::,1:s)e nded operat ions 6 per aoout 4 per cent of the total nu..1ber of suspen sions and about cent of the to tal de;ios its of all sus·,?ende d banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 14-15 - BePrire on Chain or Gro'J.p 3an::-ir.g. ·I'l, e Board I s State LP G neral Counsel, with the assistancP. of tr.e Couns 0 1 of t!1e various F0 d 0 ral r 0 servo beU:<s, recontly prepared en enalysis (X-6392) of state laws aff 0 cting th,, cwn"rsr.ip of bank stoc:<· ':y 1:old.inc o attPmpt hns been made, hoT."'V P. r, to classify coruorations. th~ states so as to show in which st,.,_tes the gro,.,th of chain or group ban'ring is li 1.<0 ly to b"' rf'tnrdod as R cons· au· nc ~ o: thP urovisions of stat~ laws, in fact t:1"' analysis coYnrs 19 stat 0 s only, th,;, r 0 mainin s tc?t <>s ap"!)clr-<mtly not heving odo".ltP.d any laws on this subj "'Ct . 1 ;; 0 I'a1)1 ,:, s on C11aj n or submi. tt,<,d to s·uool<>m::>nt banki 1e-, in addition to to v::1i.c:1 r-.lat -" to both ban:{i .g: Tabl-=i Grouu Ban1rin 7 • I'hR folloi,dng tables ar2 t:v=i a·oovr discussion on c'~" in or grouu th g"r:•' ral tables urf'viousl, r"'f · rr9d br::mc11 ban'ring ard to chain .?nd groun 0 5- Iumb r end loe.ns and ir.v-"'strc<>nts of ben~s r~portod as OPlor.ging to c ~ains and iroups, by clasrrs of benks end by stPtP,s, DPc 0 mbor 31 and Jun "' 30, 1929. 6 - l:umb~·r of baa.1<- chains c1nd groups distribut"d e.ccording to siz'? of s · stf'ms and ccordine to t,:p 0 of control, by stet ~s, D~c 0 mber 31, 1~29. 0 A comol t" list of ban~ chains [>nd grouos, sho,,.in,e: t'1e numb::>r ~nd loans ~nd inv-stm:- nts of ch~in . nd group b, n'rs, by cl."ss ..- s for bot:1 Deci=·rnber 31 ?nd Juno 30, 1329, hos Plso be,:,n or 0 p' red. A cooy of this list is nrintl"d r> s 'O[ rt of t h0 s kt "'rr "nt by th" Comptroll<>r of the Curr"'ncy in PP rt II f '011-1.rn-. I of t.. 0 h"'1ri ~g s on Brrnch, c:1· in rnd Grouo b['n".dn D"'for," th,. . Comrr·; tt..., on B. n'ring ['nd Currrncy of t~P. :o~8P of R or"'s Pnt · tiv~s. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 - 16 :BRt.TCH - - - - R\liTKii:-TG - Surrrm,,.,_ry for i.fai ted St1,te§___Q~.:l_by Cl 1.sses of :S'1:1lcs. At tho end of 1929 t:10rc ',;ere 622 b·1.r1~::s in the United St'ltcs th:1t mre opcr:1.ting br'3.nchcs. The tot1.l numb,ff of bi''.1.'1Ches o;ic r ·1.ted by these b'.l.:1ks '.lt foe ond of the ye1.r ':ns 3,547, 1,;.1d t:1e -:iggrcg".te 101,_,s ",nd investments of tbe b'l.;."Lcs .:md t :1c ir br'lnC~ll.,S n:: s ~25,100,000,000 or over l~o per cent of the tot1.l lo::l.!ls ::i...YJ.d i:wvstr.0,:ts of ill:.b::i.rJ::s in the country. Ad.ding tho tot-il munber of br~--iches, 3.547,to t:1c tot-il number of b1,_"1lcs in oper .'J.tion in the country, 24,6~-5. g.:.vcs '1 tot'"l.l of 1,ppro1eim1.tcly 23,200 b'\.."lking offices in the Uni tod. St'1.tos. .\bout o:10-0ig;.1th of 1.11 the b':U'l.king offices 7rure, therefore, br::i;.1ches. .'.. s st,.,,ted in foe first p,-,_,rt of t:1.is memor'.111dur:1, 119 of tho br'.1;.1ch systtJms \".'i th 1,415 br-:1.:1ches 'Uld lo'l!l.s '.1!1d invcstme:1 ts of .:;6,300,000,000 ,:,ere 'llso ro::_:,ortod :-i.t the end of t:1e ye'.1!' '.ls b0longi:1 6 to b·1.n]::: ch3.ins or groups. There •-:ere 106 nR.tion:il b1.:,J.r::s t:1'.1.t vrore oper"..ting 1,027 brmches 1.t t,1e end of the ye'l.r, ::md t!rn lo'Uls '.l.nd irlvcstmcnts of t:1ese n'"l.tion'"l.l b'U1k brwch s:;stcms ~ggrog1.ted $9,000,0G0,000 or more th'U'l 4o per cent of the tot'l.l for '1.11 n'ltion'll b'l.l"Lcs in the cou.--itry. St,te b'l...."llc members oper-iting brwc:ies '1.t the end of 1929 numbered 180, their bro...'1ches 1,299 'l.nd their lO'l.!"'l.S ,.,nd Lwestmen ts $9,900,000,000. There ,·,ere 476 nonmember b 'Ullcs ( including rnutu,.,l S'"I.Vings nnd pri v'1.tc b·mks) Hi tl1 lows .311d investments of $6,20G,OQ0,900, ouor~tins 1,221 brnncl:es '1.t the end of 1929. Dovclopm0:1ts Durin0 l ·1st si:c 1 ont:1s of 1929. Since Le b.st report r:"..s submi ttocl on br'1..YJ.Ch b'"l.!"'l.ldn.:; :1s of the end of June 1929 there l1'1s been 1, net incre'"l.so of 107 L1 the tob.l numb0r of br':1.l"'l.Ches in oper1.tion '1..id a net incro1.so of 4 in the nu.;nbcr of br'l.Ilch systems. This net incre1.sc in t:10 number of brmches is ,t about the s".me =i.nnu'l.l r:ite 1.s durin 6 t:10 11.st t:1reo ;yo1.rs. Some of tl10 1.,_rge br~1.ncL b'1.Ilking st1.tes, ho·,ever, clJ.o·:r but li ttlc incre1.se in the num-oer of br-:1nchcs in oper'1.tion for the six-month period, for OA-unple C-:i.1ifor:1.i1., 1nd ~.. ichigm. The princip'.:1.1 incre1.sm for t:w period ·.:·ero in :i.Tc':": York, Ohio, :?em1sylv'J.Il.i.'.1 'lnd ::::1.sso.chusetts. _\.l t:1ough t. ere r:1.s 1 net incre'lsO of only 4 in the number of br.:mch systems <luring the 11.st l1'1lf of 1929, foore ·::ere 1.ctu-:1.lly 36 bw!::s oper'1.t::.ng brwc"'._es .:i.t tl:c e:i.d of 1929 th1,t h'"l.d no bn. aches r;l:.1.tever in June, t:.is gross 'lddi tion to t:10 list of br::mca systems being offset p'.lrtly by t:-:.e f~ct t .. '1.t 25 br.'l.Ilch systems went out of existence througl1 merger rrith other b'1.Ill::s~6 b'.lllks suspunded opt-r'1.tions 'Uld 1 bm:c .'.lbolished its bn.ncl10s. The net incre,se of 107 in tJ.1e tot1.l numbor of brn.:aches in oper3.tion in the six-rr.onth period is t~e result of the cst1.blishmont of 82 de novo brwches -:wd t:10 conversion of 31 b::mks into bri,ches, p1.rtly offset by t :10 di scon tinu'Ul.ce of 49 br3Il.C es through merger ,ri th other br1J1cl"..es or otl1er,·Ti se 'll'ld t' e closing of 7 bra.nches follorring foe suspension of tho p'1.ren t b·mks. In other nords, t:-1ore •;rere 163 nev, brwc:-:.e::, in oper'ltion '1.t the end of 1929 1.s comp1.red ni th June of the s'.U!le year, :rhile 56 of the br1J1ches tho.t -.-,ere in opcr,tion si;.: mo:aths 01.rlier vrent out of existence. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 17 Branc~1 Ecnkin-; since ?assa ~e of :1cFadcen Act. At the ti :,e ta2.t the McFadden Act was "Je.ssed, on Febr:lf'r:r 25, 1927, there were 779 ba.r..:'.:s in the United St2tes thet vere o·)eratin6 1,929 brcnches in the 11ead office cities and 971 branc~1es located ~utsiC.e sucl. cities, or a totc.l of 2,900 'uranches. Since that time there h-:is been a net i'1crease of 43 in the nur..iber of ".:>ranch bar-k systems and a net increase of S47 in tne number of brenches in operation. Most of the increase re·0rasents brancnes located in head. office cities, the number of w~1ich incr-3~.se<'l fro,u 1,929 to 2,432, er b? 503. The number of branches located cutsid.c of head. off'ice ci ti3s increased froL1 971 to 1,115, or by 144. The annual increase in the number of "Jranch3s has aver,ged over 200, and this rate has been maintained in the last six :non ths. 0 Althoubh there were 206 banks operatin 0 bre,nches at the end of 1929 that had no brar.ches v;ha tever when the EcFad.:..on bill boca:ne a la·,, there has been a not incr0ase of only 43 in tl-.ce nrniber of branch S?stoms since tho passage of that : ..ct. This is due to the fact that 120 br-:in d 1 SJ' stems went out of existence t:1rough merger with other bz.nks, 15 susJend.ed O)0rations and 28 abolished their branches. Of tho 28 ba.n.Y.:s that l1ave abolished their br~chos since February 25, 1327, 26 had only 1 branch each, and 2 had 2 branches each. It is also found that of t~e 2,900 branches that were in opor2tion on Fe'uruar: 25, 1327, 224 have since bone out of existence -- 194 h2-.ving been discontinued or merged with o bor brancnos B.Dd 30 going out of existencG following tho sus:)ension of t.ciG :;;a.rent bank. There was a bross incr a.so of 871 in tho num'ber of bra11chos, of which 511 wore cs tablishod de novo and 360 wore inC:.op,:mdont 'baru~s that were purc:w.sod and converted into br2nchos. Sinco foe )a.ssa6 0 of the McFadden Act thcro have boon a number of roergurs of sor:io rat~1cr large size branch ban 1r systo,as, thus bringin_; to existence even larber syste::1s, the princi~_)D.l ones bein.; as follows: 0 Pacific Southwest Trust & Savin.;s E.311k, Los }.J1 6 eles, wi fa 100 -..,ra1,ches consolidated 1,vi th first ~rational :Ban.. ancl its one branch to form the Los .Angeles-First 1TA.;;io.,rl Trt1st f.· S"'vin6 s :Sar:.!·: Security Trust & Savir. 6 s :.O ..,n~:, Los A.nteles, wi t 11 ~!~ l1r2nches consolidated ifa Los ..... n;el•;s-First Netion-:-1 Trust S: S2.vini:,s Ea nl-.: and its 95 oranches -:;o for.1 the Securi ty-:,'Tirst 2Jation-:i.l Bank Peoples State Ban}::, Detroit, :iich., r!i th L+G branches consolidated with t~1e Wa·rne County & Home Savin.;s Baul: and its 47 branches to f~r.r, ?eo_iles-Wayne Count? J3a:1l:: The number of branch~s operated '!:>y lktional 'bc3n~rn and '"Jy state "o&nl~ members of the Federal Reserve System has been ma teriEl.lly affected by tho nationalization of a number of lp_rge state b3.nk branch systems in Cp,iifornia, either directly or by merger v!ith existing n"'ti)n;;l b·ul2·s. T}:ese include the Bank of Italy of San Francisco, the Pacific Southv1Gst Trust and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 18 ... Savino-s Bank of Los J~n 0"'el2s, and the Security Tn:.st & Savings :Bank of 0 ' Los ..\.ngdes, which i1ad a total of .+25 branches when tno ificFadden bill became a law. Tnorofore, it is found that p.q,rtl~- because of this fact the number of trnnchos of n,?.tionr.l bnrr.:s incrocJsed :from 390 on Fobrnar;:; 25 , 1927 to 1,027 2t t:he cad of 1929, whilo t:he nu;,noor of brnnchos of state 'J:,nk members doclir.Gd from 1,560 on Febru.s r;; 25, 1927 to 1,299 at tho end of la.st :reDr. T'11oro hr.s also been e. consid0ra'Jle incroi.lsO in the num·oor of branch"s of nonmombor oenks, of which thore wore 950 on February 25 , 1927 and 1,221 at the end of 1929 . Following is a sum::1ar~r showing t:1e number cf branch systems and the number of branches in operation on Febrmr~- 25, 1927 and Dece:nber 31, 192'.) by cle.sses of b?nks: Clnss of tn1:::: Total - ~11 clossos of benks Nationol b"nks State b'lnk members State b,:tnk nonmembers Mutual savings bcr.ks Private banks Number of br-n.,rn o-per2,tin;1: br~·.nches Dec . 31 , Feb . 25, 1927 1929 I Number of branches Dec. 31 , 1g2g I Fe'u . 25, 1927 822 779 3 , 547 2 , 900 166 180 407 65 4 145 189 337 50 8 1 , 027 1 , 299 1,115 99 7 3 90 1 , 560 s63 76 11 Developments sinee June 1924 . The first com:;ilete statistics gatl1ered by the Board on branches of bo tl1 member and. nonmember ban...s were for June 1924 , at which time ~14 banks 1Nere reported as operating a total of 2 , 293 branches . There was , therefore, an increase of a:p·:,roxL.atel;y 600 branches in the three years ,;ireceding the lf.cFadu.en .Act , about tiie same r ,, te of growth as has taken i)lace si nee that 3.c t was :9as :::ed. lTa ti onal ba.rcs at the end of June 1924 were operating 2 1+8 brc,nches, state bank rneinbers 1 , 137 branches and nonmem'uer tanks (includin.,; mutual savine;s and ~)rivate banks) 908 branches . Of t~1e total number of 'urn.nc . . ws in operation in June 1924 , 785 were located outside tl10 head office ci tics rrnd 1 , 503 in tho head office cities . In the five and one-half --ears ending with December 1329, t>.ere Wes an increase of 330 in the n umber of branches located ou tside hoad. office cities and an increase rf 924 in the number of branches located in he,"'.d office cities , or a total increase of l ,?,54 brwcher1 . This co~arison is shown in more detail in accorn:_)a~ring tables . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 19 Princioal Branch Ban~ine States and Citi s. l'hP 3,547 br ~chPs in ooer~tion at the end of 1929 w0 re locatPd in 30 sta os, l,26~ b~in6 locatoa. in 10 statPs in v>hich statP- ·ide brench ban'rine- is ?"'rmitt2d by lav or implicatior!, 2,207 in the 12 stc;.tes i:r.. whj ch the ooeration of bran~½~s is o"rmitted but restrictod as to location, and 54 in 6 statAs in i,;hich t:~e f-1rt'1er cxt-nsion of branch banising is orohibit d by law. ThPre are, tJPraforP, brancbes in ooPration in three-fifths of t:1<" s tat''!S, but tl-ie er0r- t '11&..j ori ty of the br'-'nches are located in a relativqly f stat~s, in fact t~o-thirds of the total rn.1.rnbBr are in 5 statPs - CRlifornic1, }Tev· York, Hichiran, Ohio and P.::>nnsylvF1nia. Four other st, tcs, ho~" 0 v0r, ;:,lso h2.d more then 100 br!'..nch<>s in oo-=-ration et th-- .,nd of 1S2~ -- Vasrechus,,tts, JTp,r J;')rS-"'Y, Louis inna ~-nd •1 ar7 larid. 0 0 ~ Wh.:tt might 1.)e tPrmed E'S 11 locPlil brcnchFJs, i . P . , bnmch:.s loc,":t<>d in th;') srun" city t•s tr,o uer"'nt bnn1{-s, L'r" lsrg,,ly confin::-d to e. f w of the urincioal cities of the country, in fact 10 cities account for l,059 or o~r cent of the total 2,432 local branches. rte numb 0 r of branch 0 s in operation in each of these citi 0 s at the 0 nd of 1529 was as follcws: 0 68 .evr York San Francisco Los Aneeles Dotroit Phi2.adelohia Cleveland Buffalo Baltimore Bcstcn Cincinnati 580 *97 *201 *30:J 133 35 73 05 bo *~O "Sxclusive of thcs 0 branches ;,:}-,CSP hicad officPs ~re lee ted in ot:ier cities. Size of Branch ~e~r S•stoms. At the "'nd cf 1929 th~re wer 18 banks thtt vArP nn°rating ~er than 30 branch 0 s, the twc larp<>st being th0 Bank cf Itcly Neticn&l Trust i Sevings Associati on , San Francisco, and the Bank of A.rrerica r,f Califcrnia, 1 -:-s An.cr"'lP.s, beth of which are contrcll<>d by thP l'ransam...,rice. c~.ru·:r" tir.n group. ThrP<> rf th"! rth,"' r lPrgF' systoms else b"'l:'ng tc [• singl;, e;r~up, viz., the Pe' -olPs-7.'aynP Ccunty B;: nl<:, the Fir~ t Tritirne.l Bank :md th 0 PPninsulrr St< te Br~n~< "'f Detrc:-i t, J.'ich., ..,..}1ich he.d a tr:tPl "f 15c br.:>nch"s <'t th,=, "'nd f 1929 e.nd which Lr~ all pl.rt nf the First :!'',!tirm 1-P"'"Dl"'S W' yw' C -unty "'r"up. In addi ti"n to the lo brench systP.ms that '!'·ere ''Jerating 30 'r m~re branches at the end ~f 1929, t 11E>M rere 41 bank-s cneratin!". 11-30 branches and 41 ~ thAr ban'rn · ueratine b-10 brancl'PS . .'rre than half '"f the branch systems, hr r.evn: (4l.!6 r, t "f e22) had :nly 1 branch each, 150 had cnly 2 branches, and 124 h~d 3-5 branches. 0 On February 25, 1927, rh8n th 'cFadden bill became a law, there wPre 12 brnnch systems with 30 ~r m·re branches. The fcllo~in~ list sh'ws ttP. large branch systems in CDerati~n b~th rn fobruar· 25, lj27 and D"'CP.~b~r 31, 1929, and thr disorsiticn made rf thr.se syst<>ms which "er-0, in r,peratir,n hen the UcFaddAn Act as passed but havP. since m~rg~d ith nther s st2ms: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 st. 6526 of branche. Dec. 1 l92L Location and name of parent bank Bank of Italy Na tio!lal Tr. & Sav . .Assn. *Benk of .A.r:ierica of Californin Security-First lfationa.l :Oank Pacific Southwest Trust & Seci.l.ri t:r :Bk Securi ~r Trust & Savin 6 s :Bank *California Bank Merchants national Trost & Savinss :San:c Citizens fatio1al Trust & Sovings Bc;nk .A.merican Trust Com\,any Peoples-Wayne County Bank Peopies State Bank Wayne County & Home Savings :0Pnk First N3tional Bank :ttonin"ular State :Brui::: Corn Exchange Bnnk Bank of Ma..'1hn. t ta.n Trust Co. B.:'.nk of United St~tos Manufncturers Trust Co. N:1tional City Ban:.:: Public N~tion~l B~r~c B~nk of Americc., N . .A. Cleveland Trust Compn.ny M..'l.I'ine Trust Company sun Francisco Los Angeles II II 11 II II II So.n Frn.,1ci::;co Detroit II II II 11 New York City II II II II II II Clcvel?nd Buffalo (a)27s (b) (c) 98 49 45 34 (e) 24 92 (f) 46 45 2 29 62 4o 6 14 18 27 7 52 32 237 160 139 ( C) ( C) 56 ( d) 31 94 94 (f) (f) (g)33 "31 67 64 ( e) 57 (g)45 37 33 (g)34 57 33 *.A.11 bnnks .n.rc now m.ombors o ... tho Federal reserve system except those In.."l.rkcd with an asterisk. (a)This was a state banl-: member on February 25, 1927. (b)This branch system is the result largely of mergers of s;naller branch systems and the purchase and conversion into branches of a number of independ.ent banks. (c)The Security-First lfatio,al BanL is the successor of tho First National Bank, the Pacific Southwest Trust and Savings Eanl: and the Security Trust and S1:.vings Bank. (d)Absorbed by the Bank of .A.mericn of C~lifornin. ( e) This was a nonmember ban1': on Fcbruarr 25, 1927. (f) The Peoples-Wayne County B:~.n.1.: resulted fro., t,10 convcr .,io, o: the Peoples State B~k D.nd t:,e Wayne Count:, e..nd Homo Savin_;s :.,nlc. (g) Increase in th.3 number of branchGs due lorgoly to tnc <1bsorption of other branch systcrns. Br8.nchos Located in Small Ci tics. In connection ,vi th the br.:mc:1Gs located outsido the head offic8 1/n.Mibering 1,115 or ner,rly one-third of all branches in operation at the end of 1929, 1t is interestin to find that y far the greater number of these 11 outside 11 branches are located in sra!lll towns and cities. Of the 1,115 outside branches, 612 were in fact located in plcces that had less thM 2,500 popub tion in 1920, including 208 in C.i.lifornie., in Louisiana, 44 in Maine, 52 in :L.,rylo.nd, 46 in North Carolina., 34 in South Carolina, 32 in Tennessee, 28 in Vi r 6 inic.., 21 in i.~ist;i s..,ip.9i, n.nd 93 in 15 other states. Besides these 612 orancl10s loc ted in :_)1--ces of loss t .''.Tl 2,500 populo tion, there were 136 brc'..nches in pl·,ces th· t had :~ ::_)opul:- tion of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s4 A A - 21 - A 5,000-10,00~ 11 outside'' There wore 281/ branches re:;?orted 2.s being loce1.tad in citios with a popul'"tion of 10,000 or more, but this figure rcprGsents largely br0nches of tho sk,tc wide-branch systems in California whoso he~dquarters are in Son FrQncisco nnd Los .Angeles but which have branchos in such other b .rgo cities as Oakland, Sacrn.CJ.ento, San Diego, Long Beach and Pasadena. 2,500-5,000 ond 86 in 'l!r>. cW' vifa popul· -tion of 1 The first tabulation made of branch b2.nking accordinb to size of towns in which the branches are located was for June 1928, at which time there were 572 branches in places having a J?OJ.)Ulation (in 1920) of 2,500 or less. During the ensuing year and a half, therefore, there has been an increase of 4o in the number of branches located in such small places. Method of Establishment of Branches. More than two-thirds of the branches that were in operation at the time that the McFadden bill became a law were so-called de novo branch0s, i.e., established as branches in the first instance. Most of the remaining branches had at one time been in operation as inde?cndent banks, having been purchased and converted into branches, but in a number of instances the method of establishment was not ascertained. The number of de novo branches has increased by 383 -- from 1,996 to 2,379. -since tho pRssage of the McFadden bill, while the numbor of indo;)cndent bruiks :purch::,_sed ane. converted into branches ( including branches for which the method of establishment w~s not ro?orted) has increased by 264. De novo branches of national bnnks numbered 635 at the end of 1929 out of a total of 1,027 bra.nches; state bank members operated 967 de novo branches flUt of a total of 1,299; and nonmember b2IL'ks ( including mutual savings and i1rivate banks) 777 out of a totnl of 1,221, Nc.tional bamcs show a considerable increase, since the passage of the McFadden .A.ct, in the number of branches resulting from the conversion of independent banks, but this is due largely to the fact that some of the large state bank branch systems nationalized or were consolidated ~ith national banks after the passage of the McFadden Act. The fallowing table gives a classific2tion of the number of branches in operation on February 25, 1927 an d December 31, 1929 according to method of establishment: All cla,sses of banl-:s Feb. 25, 1927 Dec. 31, 1929 National banks Feb. 25, 1927 Dec. 31, 1929 State bank members Feb. 25, 1927 Dec. 31, 1929 State bank nonmembers F,Jb. 25, 1927 Doc. 31, 1929 Mutual snvings 'ban1'::s Fob. 25, 1927 Doc. 31, 1929 Private banks Feb. 25, 1927 Doc. 31, 1929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Independont jlfotl1od of To ta,l De novo baIL'ks con- establishbranches branches verted into/ ment not branches I reported 2,900 3,547 1,996 2,379 735 1,017 169 151 390 1,027 279 635 88 368 23 24 1,560 1,299 1,034 967 471 296 55 36 s63 1,115 627 697 174 351 62 67 76 99 53 77 2 2 21 20 11 3 3 7 1 - 22 Interstate Brr1nc:u-mki!lg, T.1ere ;1,re two insta.11ccs of bmks operatin stat'-'s othor th8.11 t:_oso L1 '.Lic:1. ti10 p:1,rcnt b9..i1ks .:ire brru1c}10s ing situ'ltod. 'E'lo B':l.11lc of C:i.liforni:1,, lJ • ...\.., S-u1 Fro.1.cisco, .:1 conversion of t:1.0 B::1...11.:!c of C:1lifor::.iCl. into '.1 n'ltion:tl bmk in 1510, opor·1.toc 1 br;JJ1ch in Portl'l...'1.cl, Oro., 1 L,. f:i:,.,ttlo, Ybsh., .::i,nd 1 in T.:1corna, \'i'1sh. , '111 of which becu:.no br .').i1c:1.uc of ,;l, c, P...1.111':: of C'1.1ifor11i'1. in 1905. Prior to 1905 tl::oy ·.rere brmchcs of t.!10 I.or,d.ori -u:d S::m Fr'..incisco B·wk, Ltd., w!1ic~1 w1.s succooc'.od by tho B-:mk o:f C'1.liforni'1. '.i:11.o otl10r C'lso is t:1'1t of t:1.0 .?irst c.._'1ldon 1T ·1 .tion1.l B'l.11~ o.nd Trust Com]_)any, ~To'il Jersey, ,ri1ich operates 'l br:111ch in Phil-3.dolp:1:'_i '1, This br'.1l1ch ori 6 in':..lly ewe in to exi stance in 1813. Suspo:1sion or F-u.luro of Br--i:1ci1 B'1.:1k Systems. On tn.e b'"1.sis of reports submi ttccl to tho ]'0dcr:1.l R-.;s,Jl'VO Bo·ird on b-:mk f'"'..iluros or suspensions '1.i1d on br.:mcl: b3.Ilking, it '1ppo'1.rs that during t~10 nino-yonr period 1921-1929, 3. tot.'.11 of 41 bra,·ich bank systems su.spondod opcr:ttions. These brn..'1.ch systems wore oper.' 1.ting 9 br::mc!les in h1.,-:i.d office ci tics nnd 71 br3nchos outside such ci tics. Tli.e tot.::i.l deposits of the 41 b:1nli::s .::i,nd their br....:1cl1cs ·:roro $49,000,000. Five of tho br::mch systems, 4 of rbic:1 1 opor,' 1.ting 2 br'1T1c:1cs, subsoqv.eu tly re... ,1oro opor::i.ting 1 brnnch e'1.ch :1"ld opened. L'1.tcr o~e of ~~e syste~s '1.g'.rin closed. Of the 41 br.'.1J.1cl1 sys turns t:1'1 t ncro rcrported '.ls h::wing suspended during the period 1921-1929, 29 h'.1d only one br:u1cl1- e'1.ch, 6 h'ld t'.;/o br'lllches, 2 h'1.d three br'lnc:1es, 2 had four br'.1nchcs, 1 h'.1d five branches .'1l1d one h'.1d ti7onty br::mc:1es, The l'ltter b'.1l11;; -i,nd its brcmchcs 't.t tho time of suspension vrcro reported to h::i.vc I's'ld deposits of $2,805,000. Follovrine; is -:i. sumrn-i.ry covering tho suspcns:on of br-inch b:ml:: systems during foe ninc-yo'U' period. Yo'U' Number of branch b1ri.k systorns sus--:>ended '.2oto.l dcposi ts I Number ·- of lJr'Ulchcs in~cr~tion L1 ho'J.d Outsidu office hu'1.d office city city :3r:mch svstc1ns roononod Number of ts bor 1Deposi br,'.IDchos N'UJ'l-1 I - II I 1921 1922 1923 1924 5 *l l 4 $10,917,000 1,151,000 23,000 1,365,'.)00 - 1925 1926 1927 1928 1929 2 1 3 4 10 2,209,000 7,443,000 2,851,000 2,895,000 19,955,000 1 7 11 41 4s,s19,ooo 9 71 11 - - 5 1 l 5 l 33 7 7 I I I l l I s14,ooo - - - 2 - 5,882,0GO -2 4 1~,742,000 5 1 I 1 . 2 I Tot3.l I $4C,ooo *'E.:is b'3.!lk reopened but closed .,,s1.L1 '.Uld is not t:.oreforc includod \7i th the reopened bo.nks. St. 6526 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 23 - State La'.7s Reb.ti~ :Sr:nch lla~1ki:ng, The BoD.rci 1 s Counsel, with tl1e assistance of tho counsel to tl:e various Federal rer;erve banks, recently :prepared an up-to-date digest (X-652s) of sh.te laws relating to branch bani.:ing. The sw,:mary st3,temont that accompo.nieci t"Lis digest, in ·N:1ich t~e states are classifiud into four groups, is sl1o·rm belov,. It v,ill be noted tl1at under the provisions of stA.te laws, state-··.ride branch ban:::ing is p0rrni tted in 9 states; it is :permitted within lirni ted areas in 10 states; and in 22 st1.tes it is prohibited entirely (except as to bra!lches in operation at tho time the prohibitory legislation r1as enacted). Seven states have no legisl~tion reg~rding branch bJJlking, but this incluu.es Kentucky, in w:1icl1 the establishment of additio.1al offices or agencies is pcrmi ttcd under court decisions, and Michigan where the stacc banldng dcpartn;ent has raised no objection to the c·stablishmcn t of branches in ci tics in '.v:1icl1 tl10 p;J.rent ban~:s Cl!'O located, There were 23 branc:1os in oper:.,,tion in Kcntuc!cy at tho end of 1929 and 439 in Hichi~ru1, as comparod nith 13 and LfOl, respectively, ,on February 25, 1927, whe:" the:; McF1.d.don bill boc.3,mo a law. The Dis~rict of Columbia is not includ.:;cl in this surrnn·u-y, but banl:::s in Washington may establish branches a.:1yv,:10re in tl1e d.i strict • .\.ccording to information wl1icl1 has come to our attention, four states -- ifontana, Nubraslm, IowD. and "Jest Virgini:1 -- h~vo enacted. legislation prohibiting t:10 e stabli shrnen t of brnnc:10s since the p3.ssage of the :,'.cFad.den .\.ct. Tho state of Goorfia passed similar lorisl::l.tion in 1927, but in 1929 tlw L:w, rr.::i.s again a;nended to permit the establishment of brD.ncl1es in head office cities, provided such cities have a population of not less than 200,000. In 1Jcm Jersey the state law rras amended in 1927 to permit tho establishment of brnnc:;.os under tho same conditions as govorn national banks. Ij_1 Pennsylvania, logisl1tion was on.:i.ctcd in 1927pormittin6 tho establishment of brG,.'l'lchos \,i thin tho corporate J.iini ts of those ci tios in which n:1.tion:11 bo.nlcs \·ro~·o op0r'.lting branches or: liiarch 1, 1927. In Vermont logisl1.tion vr.1.s recently enacted pormittinG t:10 est3.bli shmont of 'l.goncics, ,,-,:~.ich for ·ul ~-) r.'lc ti cal purposes seem to be the s.::imo as branches. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis st. 6526 - 24 - States permitting st'.lte-·;;ide branch b.:m:.cing States permitting br'.l.Ilch ban:cing \7i thin limited 'lreas _\rizona California :;)el'.lW'.lre E'"l.ryland iZorth C::i.rolin3. Rhode Island Sou th Carolina Vermont (1) Virginia Georgia ( 2) Louisiana (3) 1.:aine ( 4) ?•:c1ssachusetts ( 5) :.:i ssi ssippi ( 6) "'r~ew Jersey (7) 1Te ,7 York ( 8) Ohio (9) Pennsylvania (10) Tennessee (11) TOT\1 . • 9 1 TOT.,\L . . • 10 St'ltesprohibiting br.:mch banking Kentucky (12) 1:ichigan ( 13) UeH Hampshire 1' orth Dakota Oklahoma South Dakota ·;1yoming ..U'lbama Ar:..ansas Coloro.do Connecticut Florida Idaho Illinois Indiana Iov;a Kans'.ls !.!innesota I.'.i ssouri l:ontana :Jebraska :Tevada New Jexico Oregon Texas Utah Washington :Vest Vi rginin. Wisconsin TOT_\L . States having no legisb.tion regarding branch banking 22 TOTAL 7 (1) !Jo provisions regarding brn.nches but State- wide esb.bl:i.shment of 11 agencies 11 permitted. (2) City or !IIUi1icipality. (3) ~nnicipality or p:'.rish. (4) County or adjoining county . (5) Same town . (6) Sarne city . (7) Same c:i.tJr , torm, tormship, borough or village . ( 3) City limits . (9 ) Same city or city or village contiguous thereto . (10) Corporn.te lLnits of same pb.ce . (11) County . (12) Ho provisions regarding branches, but court decisions permit establishment of additional offices or agencies to receive deposits and pay checl-::s . (13) "Industrial b:i.nks" imy establish branches in city or village of head office; but no provisions covering establi~unent of branches by other b'lnking institutions . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis st . 6526 St. 6526 TA5LE 1 - N'J::::SER .ru:rn LOANS R:JD INVEST:,:~ns OF ALL BA~JKS AND BR.!\NCHES IN THE UNITED STATES _urn OF BRAi.iCH Alv'D CHAIN OR GROUP BANKING SYSTEMS, DECEW3ER 31, 1929, BY CLASSES OF B.A.1'ifKS (Loans and investments in millions of dollars) Total-all classes Nonmember banks (including mutual :National banks State b.ank members of banks savi.n.fl'.'s and uri vate banks) Number of Loans and iTum'oer of Loans and Number of Loans and Humber of Loans and banks ( or investbanks (or invest'oanks (or invest'oanks (or investbranches) ments 'oranches) men ts branches) men ts branches) men ts All banks (head offices) in United States* Bra..'lches Total -- all ban.1<ing of.fices 7.~3 1,02=]_ ~30 -· 21,534 Ba..'lks 'oelonging to chains or groups but operating no branches 1,984 4,913 757 2,825 Banks belonging to chains or groups and t'1,"'rating 'oranches: H'3ad offices {p3.rent banks) Branches 119 1,415 6, 26~- 45 550 3,083 :s that do not belong to chains or roups 'out operate branches: A.. Head offices ..,. Branches 703 2,132 18,839 ( a) 121 5,9o6 Inde:oena.ent unit b:m.!cs ('owks th'.lt do ·10t belong to ch!lins or 6 roups ::md 'J,1,/- ( a) ,.2,18 22,~ 901 1,129 1,186 636 38 600 ~ ~ ol 477 142 699 7,448 440 5,484 956 1'1 1 =:-:C1.==o=n=o=t=op=e=r=3.=t=e=b=r=a=nc=h=e=s=)=======-===~l·= •~===2=8=,4=~==:!=L~==-6=,4=8=0===9=,7=7=0:=:l:::==8=4=1===3=•5=0=5=h:=1=4=,=5=~=~====1=5=,=l=~===== https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis *Excluding private banks not und.er State supervision, :lroI t·no sh.to" i;fte Doeeffi-Oer figures foP State 1:ie:nl!:s aro not a>mila::Olo, 9:rn:i in thooo caooo tho la.toot a 1milablo a::Ootr:1ct was usod. (a)Separate figures not available. T.\:BLE 2- r'UMBER OF BX:JKS .urn BR.Al:JCHES .:u~D lJUM3ER OF BRANCH .\ND CHAIN OR GROUP J3.\NKUG SYSTE.ft.S, BY STA.TLS, DECE'ffiER 31, .1929 st. 6526 B:mks that do not belong to Nu.-nber of banks that belong to ! Total In <;:ocncl"-'n t chains or groups but E-rouos or cr..ains , Total Total number unit operate branches Operating I Number of Operating number of number of banks State banks Humber of Number of branches j bra.l'lches no ba."lldng of (Head branches ban!:s I op"-'n,ted bra,1ches offices branches offices) ----.!.._ _ _ _ _ _ _ __ - - - - - - ' - - - - - - - - ' ' - - - ' - - - - - -- ·- - ' - - - - - - - - ; - - - - - - - - ' - - - - - - - ' - - ~ - - - . ! _ __ _:..=:, I ~ llp ~ 17 ---=-24.:..i·..:::.6~..:..L.:..--~3_z_.,5,!_4:. J7. .f_ _ _28~.1=-L~~~-+--=-1 369 19 350 63 22 46 413 3 415 1,300 363 437 274 274 10 TED ST.\.TES ~.:.ab.'.lJ'Da \.ri zona .\r?...ansas California Colorado Connecticut Delaware Jist. of Columbia ·o o:rida Geer ·'.l L<• 237 47 41 235 405 13 24 39 237 60 65 235 444 - Kentucky Louisisn3. . \'.line .,i:tr;yl wd ':1.s s3,chuse t ts :~ichi;'.1.."l ' innesot3. .... ..ississip,:,i Missouri ~on t:mri https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 137 1,765 ~11,q 1,257 1,069 137 1,765 9 9i,e.7i 1,257 1,069 600 331 3 3 l~o i-9- h, ' Idaho a .Illinois W,Indiana Iowa K--:msas - ,4, 2 -----=21~ ,~33'7~-- -9~34-=--_ __-=:11::..,l9'.____ _1=..;,L. . .:4-=-15L__ ___J1~0.L3_ _ ___:::2,p_;:n,£..= 323 19 5 22 33 22 7 6 341 3 2 72 343 316 45 547 3 41 253 16 - t 'J- -et:J lf 1 5 13 3 13 8 2 106 7 5 21 354 611 32 13 53 743 1,046 439 1,132 1,052 109 306 20 26 2 353 6 1 2 l, 277 195 25 33~~ 1,277 195 36 45 r,' ly ~~ - 229 37 29 195 7f&~/o9 96 1,631 41 34 16 37 33 23 106 63 124 161 3:H-o\ 13 24 - - 572 225 133 230 450 6 7 12 - - - 9 3 4 4o 19 30 75 7 15 97 42 124 108 549 175 102 200 36 g6 10 23 572 733 9Grlf1 1,170 981 330 1,241 150 7'/ T.IBLE 2 - (Continued) . ,. I St'lte iro tal Tota.l n11mber number / of b:lllks of (He'1.d branches offices) 2_ - -8-04·---'-...,____ _J_ . .braskaV'ld'.3. ~ . _ · ~a.'llpshire ~ ew Jersey ~ ew Mexico 35 123 568 56 103 1,127 416 Jorth Carolin::i. 412 Norfa Dakota 1,015 Ohio 617 01::1 :th oma 722 234 1 33 185 35 57 :·ew York 0!· -.s-:on Pen~sylvania (r ccle Isl :md 1.1.th C'.\l'olina • u th D::i.ko ta !1nessee - Tt..:X'.).S Ut'lh rermont Virginia "7'.lsr.ington .est V1rgi!li 3. ."!'yoming 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1,566 d7 77 268 387 484 1,308 104 104 474 340 297 960 86 68 Total nwrl,e r of br-i..viking offices Number of banks that belong to chains or erouns Operating Number of 0.1>eratinb branches branches no operated br.'.l!lches 806 35 123 671 56 73 13 1,849 493 412 1,283 617 84 47 2 13 27 18 271 460 42 47 n4 3 88 39 451 937 77 377 296 250 957 :,32 3 18 52 1 1 7 13 14 - I 73 10 172 21 85 1 21 ' ll 84 37 H-10 .!yf5',, 21 31 5 345 7"4 1 2 57 1 4 7 32 *Inclu~es June 30, 1929 figures for Stnte b.:mks **Includes October 1~, 1929 figures for State b'1.Ilks J 1,..,. '5 2?......,. 20W"~ ,.., 3c:o 431 1,224 26 1 86 729 22 n4 535 9 unit b'.).IlkS 123 10 61 297 969 2 I J.ct>Emcien t 9 235 1,751 68 274 387 552 1,308 104 Banks that do not belong to chains or eroups but operate branches Number o: ; Number of I bro..11ches b'.3.llks 10 78 96 39 61 435 2 3 263 5 297 897 5 5 st. 6526 _______ U.mo·1.1.."'lts i:::i. millions ---------"'-::_.::...,._ of .:..011'1,rs) :i3'm:ts th-tt belon~ to ]::ial::s U1at do not , · b e.Long , t o c h 'Uns · t eQ' st ·1 t·es __c_n:-uns 1Un1 ~- groups includint:,, Opcr·itin:3 /Op0r:1,tinb or groups but br'.1,Ilchcs) no br"l.i1C}1cs br .. ._:nches o:p0r'.'.te br1.J."'lC}:.c_s__ _\.11 b'.J,11~:s in l St'l.te I UNITED ST~~~S .\.1 'l.b '1ID'1 \.ri ZOn'.3. \.rk'1!1S'1S C'l.liforni'l. Color'ldo ( \Y_53,~17 c.3 2 Id'lho Illinois Incli'Ul.-'.l !OW'l =='.:1Il.S'1S 50 262 30 1,336 37 167 1 25G 334 134 31 37 3,802 L~o4 554 429 433 837 4,225 'J../1, 1,350 2 1,339 1,299 60 os 124 ~l.3/.r; 3,:-6" 44 1,212 22 19 692 37 17 21 91 316 521 225 534 960 12 158 3 318 27 17,222 ]' orth C'1rOlin'1 l~ or th D:1ko t ;1. Ohio Old'3.hom'l. Oregon Pennsyl V'.ll.1i -:i Rhode I sbnd South C'.lrolin'.3Sou th D'l...lco t3, 370 112 2,691 401 260 5,703 533 169 137 430 1,036 162 250 8 62 20 289 18 311 1,163 33 226 1,785 58 32 103 82 663 11 f!, '-I 135 142 --,. "'- 10,362 4,849 151 219 1,379 1,226 23 54 293 1 177 1,807 233 3,093 5-r-.3 147 ½-&tlo8 90 47 126 70 211 104' 932 50 112 222 27 1 120 917 77 191 68 135 3 4o 22 >!$Ineludos J:eo 30, 19~ fig:1-i:POB fe;r;i ats,ti °QMl.Ge. ,.,,,Inclad:cs October ~I, 1_3£:'Sl fi~.ttie~ fo'I! Stl\l,h lJ~leo. v'~ i 3 ~ ~ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l 7o 63 Sl 551 460 345 58 ~ 1,041 311 2,388 41 1Jew Yor'.'.: 282 2,311 181 38 360 165 1,043 302 359 70 231 Sl 780 402 144 2,590 ~7f6 358 46 901 ·•~2~ 26 90 2,021 1,199 i:Jebr-:isln Nevg,d3, ~rev, H."l.irr:)shi re :Jew Jorsoy :'Jew 1.iexico 1 173 ~ Si:$*~ 782 :!iichigm ::innesota Mi ssi esippi :Hssouri :Iontw'.l 1/hshington ·ilcst Virgini 'l Wisconsin Wyoming 3,420 J......_ _ 18,839 13 25 245 Kentucky Loui si '111.'.J. M'1ine ?1:,.ryl md M'lss:ichaso t ts Tennessee Tex3,s Ut'.lh Vermont Virgini'.l 18 f9S 6,264 32 ~ SI Connecticut Jel '1.vnre Dist. of Columbi', Florid'\ Gcorgi'1 4,913 . , Ind0-_J_ cndcn t unit b_an_!{_s_ ~~ ~- 360 269 345 665 36 TABLE - St'lte (Lows 3.Ild invest;nents in millions of doll-'1rs) Tob.l member bmks Member b'.lll~s that belong Member b-mks th3,t belong Member b::mks that do not th'.lt bcloi1g to to ch~ins or 6 roups to chg,ins or groups \.11 belong to ch-iins but opcr.'.ltc no groups or ch~ins or member b'.IDks and or groups but no branches ouor:1to br-,.nches o·oor-,,te brwchcs 01'.)erato br3,nches ---- Lows / Lo·,ns Lo-:ms Loms LO'.3.rlS ~~umber '.1Ild inNumber Number :md inNumber / wd in::md in::md Numb er vestments vestmen ts investments vestments vestments Il':SD ST1TBS .\.1 'lb '.1IT13. ."c.·i zon "l. .. r~'.lnS"¼.S C't~iforni .,_ Color':\.u.O J 8,522 35,934 211 119 42 17 125 94 217 2,474 218 123 1,201 306 l+ 2 6 19 Co::n ec ti cut Jdl '1,-,'U'e :Ji st. of Col. ~J ortdg, Guor .i -,. •.: - lWM3ER ;\:.TD LO_\NS .urn INVEST:AEliJ'TS OF ALL MEU:i3ER B.'u'IJKS IN EACH STATE, :urn OF MEMBER B.'\NKS THAT OP h,R\.TE BR.AliCHES OR BELONG TO GROUPS. OR CH.\.INS, :i3Y ST.\.TES, DECEhffi.ER 31, 1929 st. 6526 - - . 4- ~nois 1 '.'ln'.l :!:o·:n Z3.IlS':\.S 67 20 12 61 115 60 i:;l.µ· ..) r 234 291 252 so 127 164 245 54 2,575 436 350 203 14 3 17 43 11 22,659 855 13 1 17 26 31 21 33 2,124 23 11 31 6 33 159 23 4 4 l.!. HS 47 82 120 1,·6 15 29 5 34 25 26 919 39 69 26 11 120 29 15 29 3 34 25 26 919 5 69 26 19 I I I i i I I ! I - - - I 3,726 83 - - - - 4 - - 1 - ( '1,) 15 947 - - - - - - - - - - - - - - 13,354 13 - - - - 2 6 - 3 263 1 2 1,018 - II ! 5,579 135 22 - 4 1 - 47 82 12 12 Ind0:9e.11dcn t unit r;).em'ucr -. . , u'\.lliCS Number 7,321 13,275 105 11+ 77 174 112 180 21 92 350 195 63 13 6 l~2 97 302 33 45 44 69 l.~5 515 229 257 227 23 1,656 397 2&1 177 130 30 49 Bo 120 148 87 127 158 381 200 1l.~2 35 224 66 6s I 1L:.5 1:en tucky Louisi'IDa ::'1.ine 1:-..ryl':l.nd '.'ans-ichus0t ts 55 65 177 :-,iichigm ~'.innesota Zi ssi ssippi 273 276 38 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 42 323 233 145 322 1,691 15 12 196 57 1'"'• O•r 1,310 - 1,460 535 73 134 3 1,236 469 9 32 143 132 288 77 6 5 lBO 18 9 5 5 24 2 - 31 17 15 71 g I I I i I I I I 3 1 - - 87 13 3 6 1,- 764 23 - ) 10 21 931 2 181 - ( .,_) Less tl1'\.l1 - ~500,000. 20 - 1 62 166 3 164 J+ 75 162 - 1 LO'U'.lS o.nd investments T,IBLE Str.tte - 4 - (Continued) Tot3.l member b~s Member banks that be long Member b '.mks that belong Member bMks that do not th'.lt belong to to ch3.ins or groups to chains or groups belong to ch1ins but oper3. te no groups or chains :md or groups but oper3,tes br-mches no_br3.nches oner3.te branches o·oer'.1te br<.mches Loans Lo'lns L0'3.:1S L03.11S Lows Humber :Number 3.nd inand inNumber 3.Ild Number 3.nd inNumoer / and investments vest111ents investments vestments :vestments All member b'.3Xlks ! 187 "i ssouri n t':l..7.3. :'ieor':l.sk'\ Yev'\d"t l;ew H~shire 38 856 113 loO lJO 10 57 18 73 14 21 24 3 137 69 .,~4 - - 8 - 14 21 22 3 137 69 46 3 - 32 5 55 98 2 170 - 44 44 - - - - - - 3rl.L ::e·•: .Jersey 0, :10,1 }'.exico 29 1~ew York 656 :~ort:1 Cvolin-:i, 72 \Jorth lhkotq, 122 1,525 30 11,005 174 71 69 5 124 6 44 816 2 9,793 57 44 388 294 120 948 14 1,958 331 214 3,705 328 30 55 24 54 7 1,247 97 75 1,700 303 2 55 23 21 1 30 97 74 539 7 - 55 101 104 689 42 98 69 285 361 86 6 34 15 23 10 45 37 162 92 32 1 34 6 28 10 3 37 6 92 32 5 - 99 - - 46 172 70 391 317 202 430 34 1 1 32 156 171 - - 11 30 100 - 24 10 219 15 20 10 46 15 Ci'lio O~u :i~oma . ,·r,ri ; !3~'1 V'1Jli3. Rhode Isl'.illd u u.tb. C".l.rolin-:i, South D'3.kot3. Tennessee Texas Ub.h ·vermont tirgini 3. ·:;:;.s:1 inf;ton :es t Virgini.-t · ·i sconsin ··.:-yoming 1 1~6 131 172 23 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - - - - 1 1 - - - - 8 109 15 1,692 3 4 1 - 1 - 1 - - 2 - 29 - - - 8 - - - - - 609 54 6 7,936 57 25 1,163 128 142 1 29 5 1 983 154 - 5 54 - 69 - 135 - - - 4 - - 42 - 57 3 - 1-56 - :i.fumber 2 33 Lo3.Ils and investments 173 67 136 7 57 719 44 136 10 73 295 24 542 66 73 709 28. 1,207 117 27 358 239 96 894 7 711 234 139 2,005 25 49 67 89 ·· r 53 32 123 32 1;i 45 161 ll4 131 148 18 69 235 1~6 202 261 19 ool - .. 11 1 - - ~ntl?1Jcndcn t uni 1 · incmb ...:r 1j'.ln!:s St. 6526 TABLE 5 - CEAUl OR GROUP B.~TKING AT THE ~iD OF DECEUBER AHD JUNE 1929: SUmma.ry by states and classes of banks, showing number and loans and investments of banks belonging to chains or groups. (Fi gures of loans and investments for both Decer.,b e r and June are based largely on June 1929 Bankers Directory, and are in millions of dollars) St'.l.te - -SI' \.TES -OlTI-Tr.m 12 103 1 8 21 80 2 19 6 55 51 16 13 1 15 I I _... Kd.U S s I California Color~do I 22 6 72 49 16 Connecticut Jel~.w;xre of Colu.'nbia ltl Flcr :d.'1. Georgia I 8 ,\.1 aba.n:a. .\.ri zona Loans and investments ::urnoer of banks 1 State Member National Total ·~ :-.tio l " .:_ State member Nonmember l=J...::.un..::...e_ De-; .-/June :;)ec. J June Dec--==..::.::.:.;l:;:;.Jun.=;..=...e--11--D-e_c_.-=-.::...;.:l-=--J-un-e--11----De~c~.:...=..::..:::;.l'.=J'-un-e___,1---=De=c"-'.'--=--r--" _ _ _ Total Dec. lJuJ1e 29 11 1 - - 4 51,:.._4--=3:....,c,..::;..3,,,_97'---_ _2_,_,"'-50:;...,:9'--l--=l:.2,-=.8..!..:72=---l=-•!...:6~3-=-2 l .:.., 64.5_ - _ 1.. . .:3: . . .6___1_1_1-+"l_,_,1.:_6:...,:::5~1.!...:,0:.....:.6=5-tt-1'-1_,_,l.:_7:.. ,.7_ _8_,_,3::..;0c_.cO-t--"5'--",.L..90.::...:8:___4_!,.::, - 9 5 55 19 10 1 10 30 11 - - - 5 - - -' - 4 3 3 3 4o 19 22 43 20 9 8 41 84 17 87 8G t~1 79 10 83 85 11 20 11 19 3 24 2 31 22 16 10 12 4 10 4 10 6 6 5 5 2 45 33 27 19 135 308 21 _,,. 86 261 21 34 32 23 9 2 3 2 1 32 18 50 1,528 30 9 5 43 18 5 - 3 7 18 41 1,476 30 37 1 - - ~~ana K a..YJ.S3.S Kentucky Louisiana :"' ine :;aqlnnd :<\ssachuse t ts 1lichigan Minnesota Jississippi i ssouri .,!'.>ntana. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis )b 45 33 132 2 1031 9 I 16 8 : 94 143 26 17 8 55 1 1 1 13 53 63 37 1,212 41 90 37 9 26 52 8 4o 30 10 9 11 293 14 21 61 22 1 1 70 53 8 871 130 762 281 73 225 1,262 65 584 156 15 19 158 20 81 21 I 428 366 21 194 708 348 2 82 174 19 22 24 5 51 22 1 33 12 5 3 68 24 4 35 2 33 25 5 9 190 22 1 l 14 14 4 3 11 2 8 7't 17 663 21 78 30 15 6 2 124 i44 4 4 7 7 2 9 1 4 2 I 1 4 44 1 33 5 46 1 - 120 51 62 - 11 226 - 129 157 30 73 11 225 - - 134 166 996 1 12 14 4o2 - 8 7 1 12 17 350 - - 29 1 1 1 - - 8 21 7 6 15 848 23 - 4 14 I 31 6 22 952 23 4 1 ,!'~. Aiho inois ~ nonmember I June Dec. I 269 15 157 45 467 g 2 8 26 26 111 41 13 29 111 23 20 11 271 3 21 20 7 3 3 55 43 25 188 115 g 20 12 59 74 g 20 9 6526 St. ~.'\.3LE 5 - (Conti~ued) 1Jur:1::,..,:;:- of banks I Total r JIT3.ti~;i.Ul Tstate member l~ oru118rr.'u er /DecJJ~e j:rx:c. I Juna Dec. /June June ...__ - - - - - - - - - - 1 ~Dec. - __ - - -c·1 ::orth Carolina 1 or t:':l D::i.ko t::1 Ohio o::l'lhoma '"<ishington "Y\..:st Virginia ·7i sconsin -yorr.ing https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I I I 8 5 102 31 52 45 - I 100 85 82 36 43 33 48 3 3 2 2 61 54 II I I I 84 26 23 79 27 1 I I 'ii, l.Lli ,,- II I - - 14 18 - 30 , I 2 54 45 ; 18 15 1 1 31 16 15 1 1 '24 11 25 6 1 8 21 - I I - i - 9 I I 4 25 5 I I 32 I -26 18 56 0 I I 22 3 60 114,. Cr go-:i enncssce cxas TJt'.Jh '/ermon t •riq~inia I - rcw York ~ . I I !:l:ampshire .- ..,vr J orst:y lTe.,., Mexico :?...::i.:.:~•l vania E.hoa._, I slMd f::, l~h Carolin':l. t:.th D-x.:ot3. I 68 16 73 13 brc,,ska. -ev~d.a - - 3 1 - I - 6 i l I i 5 10 1 - I I I - 3 I - - - I ! 16 i . - 358 3 32 20 I 2,011 1,571 - - I - I I - 3 - - - I l, 238 - 92 89 50 105 73 62 62 - - - 44 36 189 34 22 212 22 - 576 - 3~ 7 3 2i{ 14i 10 50 1 - 624 - 71 344 7 3 36 15 55 17 - 98 2 - 82 782 153 8 39 21 56 3 4 I 16 10 1 97 2 109 - 82 803 153 8 47 r,I" oO - - 4J+ - 8 89 12 23 1 1 27 - - t· 14 9 46 96 13 23 1 1 27 70 - I 44 31 97 58 103 - 3 ·4 396 3 .I I 27 23 20 36 5 June 62 70 1 30 1 l 20 4 - 14 Dec. 50 ;I :2 'I 17 3 51 10 Loans and investments State Momber National Dec. Dec. I June I June Total 30 - - 54 - 3 374 142 - 2 - 16 12 13 14 76 190 1 184 1 861 149 134 14 14 - - - - - - - 79 154 63 15 205 22 131 15 175 15 - 29 1 29 - 2 6 -2 - - - 3 352 142 - 14 3 Nonmember D1;C. I June 14 3 - 5g 32 28 59 53 32 I - 21 9 22 - 19 9 .! I I I 3 - 1 - 1 1 - 37 22 - - - - - - - - 1 - 7 10 86 4 4 9 44 12 18 30 12 13 8 - I 75 - 86 4 4 9 - - - - - 20 15 31r 30 6 - 0 - • 191 1 e er :'..w3~E 6 - CH_\Il:T OR G::.:i'.OUT A nA 1T THli trD OF DEC::::::,;:s::a of groups i:.1 each stJ.te, distrib-.:cted acco ~ n r; to size cu1d accord.in!§; to ty1)e of t:;roup. st. 6526 ------~,------,1,---------:-Tu_i_n_o_er--of-·-gr-;~-~-Js------~--H-um_b_e_r_of--~-r-oups 5 Total number of groups* St3,te U::H T::iD ST \TES 3 / 4_r0 I o:mks bru1l:::s controlled by I Holdin <":' Indi7-10 \11-20 Over 20 ~ com:Banl::s vi dbanl:::s banks banks --'-------1~p_an_i_e__s_,__ ___ .,__u__o_i_s__ 1· __2~8~7--~~S_4_~1~2~~7__ 61 l.i, .Uabama _'i.rizona .\r~:::ansas California Colorado 1 3 5 Co:1aecticut ::Jela'?Iare Dist. of Col. ::-1orida Geor .::,ia. I d.3110 Illinois Indiana Io··ra K'.lllsas controllin~ 1 - - 1 3 3 1 1 1 6 5 3 3 3 2 1 2 5 2 l.~ 2 3 1 1 1 12 2 19 4 3 2 2 1 5 13 1 12 2 19 2 2 1 -:'ei1nessee Texas 20 1 1 1 1 9 1 3 l.:. 2 3 1 1 3 1 2 3 34 1 2 10 20 7 8 2 3 6 1 2 2 1 2 2 1 3 7 1 2 1 1 1 10 12 2 4 1 6 6 1 1 1 4 1 2 12 7 l.~ 5 1 1 1 1 1 7 7 2 l.~ 1 5 1 2 4 2 6 1 1 2 8 1 B 3 3 1 1 1 3 1 1 1 1 14 8 2 3 2 1 1 1 5 )., 2 1 7 5 1 1 4 4 1 5 5 5 V ,cff1110n t 2 10 1 16 Ut'.:ll1 1 1 3 4 2 1 2 2 6 5 4 5 1 10 1 Orebon ?ennsylv:mia Rhode I sl:mcl South C3,rolina. South Dakota 1 1 1 -.rebras~:::a 11Tevada }Te;-, Hanr:ishire ~Terr Jersey 1J ev, :.'.exi co Old1.h.oma 3 9 3 Ke u York :,T orth C3,I"olina :Torth Da.:!.cota Ohio 2 3 3 1 2 3 l 1 3 3 15 1 1 1 1 1 2 1 2 3 7 190 1 11 37 44 1 -'iichigan :.~inneso ta ;{i ssi ssi:Qpi ;:i ssouri ontana 1 1 1 1 1 5 q 2 1 1 12 KentuclcyLouisiana : :aine ~!:ar:rland :(as saGl'rns et ts 1 1 1 26 3 .i irginia 1 12 :·:ashington .:est Virginia -:;i sconsin -'"yoming ,... 0 ) r 1 *Represents number of 6 roups '.1hose headquarters are locuted in the st'.lte, and not the number opera.ting in the state, 3.s some of the groups operCtte in sever-:i.l st-:i.tes. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T.\.BLE 7 - su- ~n.RY OF BA a: tlrn:I:TG T.lJ THE UNI'.i'ED 1Dcc. I 1929 31 sT.\.TES~ 9- - 1929. 30 1929 30 192s June June st. 5 Feb. 2h Jm1e I 1924 1927 26 30 Nu:::srn OF L.\tffS Tot:3.1 . . . . 2~-, 61~5 25,115 322 318 OperatinG branches By cl~sses of b.:mks: ~rational b.:mks st~te ban£ members St:1,te br.mk nonmembers • :'.UtU:-J.l savings banks ?ri v3,te banks . . . 25,950 *26,973 835 779 23,996 714 145 103 191 387 190 398 62 4 169 186 415 53 7 16l.~ 189 387 50 28 ( a) 3 By loc'.ltion of branches: Only in he:::i.d office city Onl:r outside 11 " " Both in .311d outside head office city 517 257 48 518 526 391 252 262 283 l.(3 47 l.(O By pop1}.b,tion (in 1920) of cities in -..,:·dch p:1ren t banks ore located: 100, 00'.) or more 50,000 to 100,000 25 , J OO to 50, 000 • • . • Less tl-i.an 25,000 . . . . 351 81 75 315 359 34 70 305 372 81 66 316 353 65 61 300 l.µ.~g 443 153 130 37 33 17 469 150 4l-!-6 35 41 14 127 124 35 35 12 3,440 2,362 1,078 3,230 2,214 1,016 2,900 1,929 971 By size of branch systems: 1 brl1.nCh • . 2 branches • . . 3-5 branches . • • o-10 br.:mches 11-30 branches . . Over 30 branches 150 124 41 l.a 18 126 :rn:csER OF BR\:i.-CHBS To t':tl • . . • . • • . • • In head office city Outside he1.d office city Location of "outside II brcmches In pl3,ces vri th popul 1.tion of Less tha:..1 2,500 2,500 - 5,000 5,000 - 10,000 10,000 or over By classes of ba,1~:s: :hti onal banks . . Sb,te bank members St'.3.te bank nonmembers :.:utu3,l S'Wings b,:1.11}:s . Pri v3. te banks . . . '.iethod of est3,b1ishment: De :Tovo (as branches) ..• Independent b.:mks purch:1s ed md converted into brX11chcs Not rcJorted .••....• 3,547 2,432 1,115 612 136 86 281 591 133 84 270 1,027 993 941 1, 2<i8 1, ~220 99 96 '373 36 7 7 10 390 1,560 363 76 11 2,379 2,329 2,214 1,996 1,017 151 958 153 853 163 169 1,299 1,115 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 572 128 79 237 l, 0~f6 *!!l:::i.rch 19 27. (a}i.Tot sep1.rately tabulated; included v-ri th 2,293 1,503 7G5 11 (not :::i.vr-dl '1.ble) 2t~g 1,137 903 (a) ( a) 735 st3,te b:J.nk nonmembers. 11 T_\.BLE g - NUMBER OF R1.T1.5 C?F...."t.'..Trm R.'t..\lJCI-iES :urn NUUBER OF BR.\:ICHES DJ 0?ER.\.I110iJ, JU:.JE 1924 -· DJ~C. 1929, BY ST.:\.TES St. 6i::i2 6 Number of branches Uumber of ban'~s operatin~ branches June :F'eb. Dec. June Feb. June Dec. June U:.JITED STATES Total N:1.tional State member State nonmember !1futU3.l S8-Vin[;s Private 31 1929 30 1929 25 1927 822 166 180 4o7 65 818 779 164 190 398 62 145 189 387 50 4 4 8 30 1924 108 191. 387 28 * 31 1929 30 1929 1,027 1,299 1,115 3,440 993 1,298 1,046 96 99 7 7 25 1927 30 1924 2,900 2,293 248 390 1,560 1~137 908 863 76 * 11 State wide branch banking permitted 216 Total .\rizona C3.lifornia Delaware Dist. of Columbia ~.b ryland North Carolina Rhode Islond South Carolina Vermont Virginia 7 53 7 12 30 39 11 11 7 39 215 7 54 7 11 33 42 11 12 226 S 72 5 10 35 4o 11 8 237 6 99 5 11 27 4o 9 9 33 37 31 1,286 1,265 22 22 861 863 12 13 23 24 125 124 77 77 35 35 50 57 10 60 61 1,120 23 762 14 20 113 74 29 25 835 20 538 18 19 88 66 21 20 So Branches restricted as to location 581 16 10 42 24 Total Georgia Kentucky Louisiana Maine Massachusetts :.1ichigan Mis sis si l'.l:?i Nevi Jersey Uew York Ohio Pennsylv:mia Tennessee 88 62 11 55 106 55 80 32 578 16 9 42 24 86 61 11 53 106 58 31 31 526 21 5 41 24 79 68 11 14 106 53 82 22 447 21 4 34 23 61 63 11 14 77 51 67 21 2,207 2,121 34 39 26 28 108 106 61 63 154 161 l1-33 439 25 25 103 103 682 722 259 268 169 185 67 68 1,726 1,397 53 39 12 13 106 54 133 98 lfOl 332 25 25 21 21 362 517 203 231 131 98 53 55 i~ Br~nch banking prohibited by law** 25 5 Total Alab'IDla !U°k'msas Florida Indiana :unnesota :-Jebrasb Oregon 7!3.shington Wisconsin 2 4 • 2 2 l 3 6 No branches in operation: 25 5 2 4 2 2 27 5 2 4 2 2 30 5 2 54 19 3 54 19 3 19 3 1 1 2 l 3 6 4 7 5 7 -9 6 8 3 6 112 1 2 2 1 1 2 1 5 9 5 9 6 9 Colorado, Connecticut, Idaho, Illinois, Iowa, Kansas, Missouri, Montana, Nevada, ]Jew Mexico, Tex'3.S, Utah ·;7est Virginia "iJo provision in State law regarding branch banking. iJo branches in oper.1 .ti0n: "Ne1.1 Hampshire, North D~cota, OJ.r..13.homa, South Dakota, ;'!yoming. ~rot separately tabulated. *"'Br.'.11,ches reported were established prior to prohibitory legislation • • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3 1 l 4 3 61 19 7 9 ~~-~ ·ria1E 9 - BX.Ti:.. s O?ER\.TE~ e , rrc :BT·b-;:ams on DEG'.":.rnER • - BY sT.\.TEs 1. 6526 St. N1.1111ber of br.sncb.es ::.ocation Operated by --·-r--·- .. OutIn state side head HonWa- bank Tobl State NonTotal 1fao. H. office tional mem- me:nber tional mem- members City city bers banks bers banks }Jumber of b'illks o-per:1ti:'.1 6 branches States U]Il'ED STATES 822 166 180 476 3,547 1,027 1,299 1,221 2,432 1,115 State wide branch bankine permitted Total \.rizona California Delaware Di st. of Col. :fa.r;}'land :forth Carolina J.L.1.ode Is land Sou th Carolina Ven,ont irginia 216 7 53 7 37 12 r 23 2 5 2 12 30 39 3 3 11 2 11 3 2 3 4 2 7 39 8 3 0 156 5 36 5 6 25 33 5 6 7 28 1,286 22 853 13 24 124 77 35 57 10 51 526 480 12 8 4 2 8 12 189 12 105 2 24 7 26 2 11 571 10 278 11 12 92 66 7 47 10 38 475 318 811 ~ 3 24 22 545 10 Ge .. 11 16 g Branches restricted as to loc~tion Total Georgia ICentucl,cy Lo'Jisiana ~.':aine :fassachusetts 1,:ichigan :i.1i ssi ssippi New Jersey ~-Jew York Ohio Pennsylvania Tennessee 581 16 10 42 24 121 151 309 2,207 4 4 ~ i ~~ 88 17 62 11 55 106 55 BO 32 1 6 1 11 16 30 1 13 32 8 16 19 37 20 17 9 35 23 55 21 10 18 37 27 47 23 106 63 161 439 25 103 722 268 185 68 484 1,099 ~t8 63 72 1 33 189 19 43 25 624 1 1~ ~ 35 3 27 309 63 60 71 58 24 31 70 82 104 43 39 463 167 38 1,930 16 25 l.~9,.. 6 142 436 1 93 721 235 176 30.- 277 23 3 57 57 19 ✓ 3 24 10 1 ...... 33 9 38 V v Branch banking prohib~ted by law* 6 1 25 Total _\.laba..-na .\.r:::3.11 SRS Indiana ::L1:..1esota :rebraska Oregon ·:ias~1ington ·.7i sc on sin 5 2 4 2 2 1 3 6 Ho bra,,7.ches in operation: 1 2 1 11 4 54 19 2 3 2 ~ 17 11 1 2 5 26 18 27 27 19 3 3 6 2 8 1 6 2 2 2 2 1 1 1 1 1 5 9 2 2 1 3 2 4 3 2 8 1 1 1 3 2 1 Colorado, Connecticut, Florid.a, Idaho, I~J.inois, Iovra Kansas, :.!i ssouri, 1/.ontana, Nevad..J., /ew :.;exico, Tex:1s, Uta}1, "lest rirginia No provision in State 1'1.•:: regarding branch b'.Ulking Jo branches in operation: LTOTE: :i-Jew Hampshire, lTorth Dakota, Oklahoma., South Dakota, ·r1yoming •"Branches repor tod ·rere established prior to prohibitory legislation. Of the 2,432 branches located in head-office cities, 537 TTere operated by n'3.tion1.l banks, 1, 1S3 by state bo.nk members, and 582 by nonmember banks. Of the 1,115 branches located outside head-office cities, 34o TTere operated by national b,'.IDks, 136 by st~te bank members, and 639 by nonmember banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis V J - ' s. of Bank Operations file March 13, 1330 st. 6526 TO: Federal Rosorve Board FR01l: l&r. Smead SUiiJ:;CT: 3re.nch, Cl1a.in a,1d Group J3anki.~6 We have no··r completed the tabulation of the data received from the Federal reserve agents on t}1e above subjGc t as of December 31, 1929, and there is presented hcrevri th a summary of branch, chain and group banking as of that date, Detailed statistics appear in accompanying tables, and our records on branch, chain and 6 roup banking givo further data with respect to individual banks and individual branches. ExpGricnce with our branch banking record during tho :)ast throe years loads us to believe that it is substantially complete and accurate, oven as to nonmember bAnks, In the case of tho chain and group banking statistics, tho prosont conrpilation is probably the most com:;?lotc that has thus far beco171e available, but due to tho difficulty of obtaining infor,i1ation on this subject it is qui to likel;y that it does not include a few small chains for which no information is available, and it may not include all the aanks in so~e of tho groups or chains. It is also possible thet the management or controlling interests do not ro 6ard some of ti1e banJ:~s that are includod in our figures as constituting grou~ or chain systems. On the wholo, however, tho information as submitted on chain and group banking is believed to be substantially correct, Tno material is presented under threo general heads, ~10 first part relates to branch, chain and ::;rou:1 banking taken as a whole, the second to chain and grou] banl:in~ alone, and the third to branch banking. No account is taken in this ,nernorandw;i of iJorri s Plan banJ.::s or small loan agencies which operate in a Il'Wilber of states. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ' t!arch lb, 1930 . St . 6526 w.-:r::o:R;,11D:.,M o?J B:RA~TcF, cT~rr A:.\rn GRO'JP BM:ZIN'.J PREPAR1".D FOB ':'~ INiOR:!iATI0N OF TEE F"SDERAI. RESEFVE BOA...-q_D. The tPbu; a cion of th"' d,.,ta received fr-;rn the Federal reserve agents on the a"'Jovc subject as of Decerr.oer 31, 1929, has been com~leted and there is presented herewitb a Fu ~ ary thereof as of that date. Exnerience with our ·b:ranch tanl, inr record during the pcLst three years leads us to ·believe t 11et it is substa1.tiallJ ccm1:'lete and acs1:rate, even os to nonmember ba :1ks. T.n the case of tiie chc1in a r d group lanking statistics, tl-:.e -::iresent cor!1T')ilation is probaoly the most -::o!'-•~ete that has thus far become available, but due to the di+'fi~ul~y of obtaining- 1nforr11ation on tl-is subject it is quite likely th:1t Lt J.oes not include a few smal 1 chains fo.,..· -w:·:ic, no informat ior i"' available, and it inay not ini::lude all the b'1 r.ks in SOilie of the grouos or c>.air..s. It is also po~sible th1.t the ,.,e .:~genient or controllin~ int e rests do not rr>gar-Q some of the banks that are inclucl.ed in our figures as constitutin~ ~rou~ or c~ain s1stE s. On t~e whcle, however, the infor:11ation as sub1,1i tteJ. on cha.in and groun oanking is bel i.eved to be substantially c,Jrrect. The ,1 ate:rial is nresen t 0d nnder three genera.l heads . The first part relates to branch, cha.in and group banking taken as a whole, the seco:Ki to chain ana. group banking alone , and. the third to branch banking. No account is taJ.cen ir, tLb ..:emor.:·.ndum of l.lorris Plan banz:s or small loan agenciec which o,·.erate in a number of states. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I f 1 General _Sum..r.r.:_y. Accordi..g to statistics just co.rr1,iled, foere were in Ol_)eratio11 i.1 the Unitei States at ti1e end of 1929 , 24 , 645* -Danks and 3, 5~7 lranci es, or a total of 28 , 192 banking of....ices . Of this total of a::;:pr·0x:i.r,12tely 28 , 200 banking offices , tr.ere 1vere 6 , 353 bax1ks and branches that belongecl to branch ban2.c sys t~ms , to c:1ain or group bank s;1,rsterns , or to both . Tl.is lec._ves 21 , 839 banking institution s tba t might b e def ini to ly termed es II inde,~)cnden t uni t banks" - - havin,: no branches and being in no wa;,r connsct0d with other banks throUnh chain or group affiliation . As a mea.sure of the bankin 6 resources of the banKs fallin~ into the different categories , we have te'uuL:ited th8 ficw·rs of total Joa11s and investme,1ts . On this basis it a:)pears that at the ey,d of 1929 all banks in the country !1ad total loans antl Lwestments of approximatel 3r $58 , 500 , ooc , ooo* . On thd samG date the oranch , chain and .;1·ou:.9 'ua:rJ::ing systems , embracin 6 a total of 6 , 353 ba1~::s anQ branches , had total loans and investments of aJ0r oximately $30 , 000 , 000 , 000 . I n other words , the bankine resources of the branch , group and chair systems were more tr.an one-half the total of all b3.nks in the c 01-.u1 try . The b ranch b ari:.cing systems at the end of 1929 , ta1cen a l one , embraced 822 banks and 3 , 547 branches with aggregate loans and investments of s25,lOO , OOC , OGO , but these fig 1.ires incluue 119 banks with 1, 415 b ranchGs and loans and investm,nts of $6 , 300 , 000 , 000 that were also reported as belon 6 ing to ba:rlc grou:)S or c~1aias , There •,ere 287 ch2in or group bank sy~tems report~d- in existence~a t the end of em?racing 2 , 103 banks w1 th loans ana 11cvost..1-.:nts o- $11,200 , 000 , / ~cs.., fi uns , 6 like those giv,m for tll0 brqncll s~_rste;.s, incluJ.e a, certain amount of duulication , that is to say , they inclv_de 119 baTLrn with 1,415 brn.nches and loans and investmonts of $J , 300 , 000,0CO , whi.::rt "1ere rc-:?orted as tclonging to chain or grou-9 S?ste1.1s . Tnis duplication is , ho ·mvor , eliminat,_,d fror.1 the combir:0d statistics ._;ivcn in th0 tvJO _.?r0codin 6 yaragraphs . 0~~9, 1 The tabl0 on the.. follov,in 6 ::_)age s'1o•·•s the numJ.Jr and. loans end investments of branch , chain and brou:p 02nannJ SJSLJms 3.t the end of 1929 , in com.:_)arison r,i th figur0s for 211 banks in t11c c :run tr:' . *Excluding 9rivat"' ban!-::s not undor state su~?0rvis1on , For tt"O statcs tho Docor.1ber fi ur0s for state b2nrs 9.r0 not availaolu , and in thvSv cases thG 13.test availn.ole abstract W':.S USG 1. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 - - ' 2 IMBER .AND LO.Ars A:JD I3V:::s7..::u;rs 8F .ALI. }3_.:W,'\JKS r; T:IE UNI ED ST.~'1'1:S Al-JD OF BRtNCH, CH.Arn A. D GROUP :aYCTC SYS'IR/.iS AT 'IliE E!rn OF 1929 Nunber of banks ( or branches) All banks (head offices) in United States**· . . • . . . .. • . . Branches . . Total -- all banking offices • Banks that belong to chains or grou~s but . . •••. operate no branches. .. . 21}, 61+5 "3,547 Independent u.~it banks (banks that ao not belong to chains or groups and do not operate branches) • • . • • . . • . • . . . . (a) (n) 28,192 $58,461,000,000 1,984 4,913,000,000 Banks that belonG to chains or grouJs and operate branches: Head offices (parent banl~s) Lranches . . . . . . Ban:.~s that do not belong to chains or 6 roups but operate branches: Head offices (parent barL~s) • . • Branches . . Loans and investments *6,264,000,000 (a) 703 2,132 *18,839,000,000 21,839 28,445,000,000 (a) *Includes branches, separate fi 6"UI'es not being available. **Exclusive of ~rivate banks not under state supervision. For two states the December fi~'Ures were not available for state banks, and the latest available figures were therefore used. (a) Separate figures not available. Branch, Chain and Group Bankir.g Areas . T·,J::on generally and looking at the situation from the standpoint of the number of 'banks involved, chain and group banking exists on the widest scale in those states in which branch banking is prohibited entirely, for e:xami,?le, in :.1inncsota, North Dakota, Kansas, Iowa , Illinois, Oklahoma and Texas. It has, however, grown to considerable proportions in so-called restricted branch bankint1 states -where branchus r.iay bo established only in the head offico city, notably Michigan and New York. Fro;n the standpoint of banking resources controlled by the members of the groups and chains, chain and group bankinb is also found on an extensive scale in certain additional states, including particularly California, Florida, Georgia and r.{on tana. As is gen3rally kno~n, chain and group banking has had i~most rapid development in recent mont1J.s in the northwestern s ta tcs, but considerable activity has been reported in so,ne of the eastern and southern states. There are relativel~r few states where it does not exist to a substantial extent, but the predominant chain or group banking area r:iay be said https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - - 3 to comprise the middle western, western and central states. There seem to be at present very few legal restrictions on the formation of bank groups or chains, and the continued growth of this system, which might be termed indirect branch banking, is thus possible generally throughout the country. ~ne growth of branch bankin 6 , on the other hand, has been restricted by law in many states, and the branch ba.nkin 6 area has not c:i1an 6 ed materially in recent.years. State-wide branch banking has, of course, had its greatest development in California, but it has also developed to a considerable extent in Maryland, Nor th Carolina, Rhode Island, South Carolina and Virginia. The other states embraced in the principal branch banking areas are those in which the establishment of branches is restricted as to location, including New York, Michigan, Ohio, Pennsylvania, Louisiana, New Jersey and Massachusetts. The branch banking area is, therefore, much less extensive than that in which chains or groups operate. It includes most of the eastern states, and Michigan, Louisiana and California, but very little of the central and middle western sections of the country. Member Banks of Federal Reserve System. The branch, chain and group banking systems, which in the aggregate had approximately $30,000,000,000 of loans and investments at the end of 1929, included 923 national banks with loans and investments of $11,800,000,000 and 278 state bank members of the Fed.e ral Reserve System with loans and investments of $10,800,000,000, or a total cf 1,201 member banks with aggregate loans and investments of $22,700,000,000. These banks therefore controlled approximately 63 per cent of the banking resources (as measured by loans and investments) of all member banks of the Federal Reserve System. In some states the member banks that operate branch systems or belong to chains or groups control the greater part of the banking resources of all of the member banks in the state, as is brought out in table No. 4 submitted herewith. It will be noted from this table that in the following states the loans and investments of member banks that operate branch systems or belong to chains or groups constitute more than one-half of the loans and investments of all member banks in the state: California Delaware Didrict of Columbia Florida Georgia Kentucky Louisiana https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Iiaryland Massachusetts Uichigan Minnesota Montana New Jersey New York North Dakota Ohio Rhode Island South Dakota Tennessee Washington - 4 Ta"'ules. For reference __mr·oses, t_.e follo·rin" ' t,90les rel-=-tin.; to branc,1, chain anC:.. rou.:•? :Ja~::in__, are att-:tched: S:a:Jle 1 - Number 1.nd loans and. investDen ts of r..11 banks and branches in the United. States E-nd of oranch, chain and. J;rou::_:i b"'.IL.dng s~rste,1s, Dece;.1ber 31, 1929, !?2 clp sses of oan!.:s. 2 - ITumoer of oan:s :-nc 'Jraaches and nu.aber of branch, c~12in and ._,;rou, oarikin~ s~rste,ns, oy states, Dece._1-...,er 31, 1923. 1 ) 3 - Loans and invest..1en ts o.f a.11 ba.n~rn and of branch, chein and. _;rOU.J o ;,nk: inb s3rste..1s, bv states, Dece.1...,er 31, 1929. 4- Number a.nd loans -"'Il(: invest .. 1ents of all member banks in eech stc'te rnd of u1e;.1oer b.:mks that o:)erate branches or "Jelou~ to ~,rou_:?s or chains, Decer.iber 31, 1923. I.:ore d.etailed infor.i1at ion 0!1 chcin a.nC::. .,ro uJ b[nkin_" anC: on branc~1 brn~:in6 is given in the se·~=u.te sections rebtin 0 to these subjects. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -- ·-- 5 CR.ti.IN .AN.:) G30t,'P J3_ti',TIHG Definition. When the Federal reserve agents were requeste ,i to fur11 nish the Board 7ti th reports on chain and group banki ng , t!le term chain and group banking" was defined as con~prising those systems "in which any person, gro~ of persons, :9artnership, association or corporation has actual or potential control over the operations or policies of three or more banking uni ts, each workin 6 on its J\'ffi ca.Qi tal and under its own personnel. 11 It is on this basis foat the statistics submitted herewith have been prepared. It should be realized, of course, that under an;,r definition of the term, many difficulties present themselves in endeavoring to make a comprehensive survey of the subject, particul-3.rly where nonmember banks are involved. The sources of the information obtained -oy the Federal reserve agents include examination reports of member °Janks, national bank examiners , state 0,.rnking departments, the man2,goment or controlling interest of some of the ;rou::.:is , arid in some instances press reports or similar information. No attempt has been made in the present tabulation to distinguish between 11 chain banking 11 ;:md 11 group bariki~e, 11 but it is of interest in this connection to note that t;1e Comptroller of the Currenc:r, in a statement made before the House Eankin 6 and Currency Committee on February 25, made a distinction between the two terms as follows: T'ne term 1 chain ban....1cing I has been in use for many years in this country to describe a condition in which a nunber of banks were owned or con trolled by the same individual or by a group of individuals. These so-called chains were situated very largely in the rural districts and the member banks of the chain were principally small country banl:s. This condition was and still is quite prevalent in the agricultural regions of the West and South. Many of these chains have come to disaster through the failure of all of the banks which constituted them. During the many years this type of bank ovmership has been in existence it was not considered as a trend toward a fundamental change in our banking system nor did it relate itself to the auos tion of branch banking. On account of the failures of several of these chains the term 1chain banking' began to carry ~ith it an element of disfavor. "The tenn 'group banking I is of very recent origin and is being used to describe what appears to be a major movem0nt in our banking system. The }:)rincipal factor in group banking is that each group is centered around a city or metropolitan bank through means of a holding company which ovms the majority of the stock of each bank thereby creating a system of banks more or less integrated in management with the central bank of the group. Its one common factor with the older type of chain banking is that several coun tr:, bam..s IT'k"Y be a.med by a single agency. In this discussion, therefore, I shall use tho term 'group banking' to mean the ownership and soLle element of operating control of several banks throu6h the mcdiuin of a bank holding company . 11 11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 6SumTTJery for the United Stc1t8s .As he.s o.lrredy b, , n notP'l, som"' of th~ b"nks thr-t belong to chc'.ins or · 5 roups ~lso op"r::tt~ br?nC'F'S, in f~ct the h·o l=re,';"St brrnch syst"ms -- th,., B,:-,nk of It~ly ~atiom1.l Trust & Savi11gs .Associr-tion, Sen Fr"Pcisco, Pnd thP Ben~<" of A.rri .~rica of CE'lifornia, Los Ang"l'"'s, 11i th e totP.l of 447 brnncht)S, ,rf' includr-d in th Trc>nsa.'IIPric;:, Corpor.<ition group of N"lw York. If :-,11 ch?in end roup bPnlcs c>.rr irclud "'d , irh'-' thrr or not they 0"'9~r-.t~ br::1.nch s, th"' s tPtistics show thnt o.t the end of 1929 th"'!r" w~r.-. 26 7 bank chai '1S r-nd grOU"'9S in the Unit ;;d Stet c,s l"rr.brncinf; 2,103 ban}::s, as comparnd n. tp 275 chains and groups Pmbr~cing 1,821 b~n..ks at th~ ~nd of June. Th~ 2,103 benks rP.pcrt...,d as b~longing to b<~c chcins or groups ~t th~ 0 .d of last yrer constitutnd about onP-tr.0lfth of th'"' b,n~s inC08~ country, ~hile th,ir loans and inv 0 stm"nts -,:,r>r 0 about $11,200,000,/or nearly onl'!-fifth of th~ a.gp-regate loans and inv,.,stments of all ban:rn in the United Stat0s. 0 Sumrrary by Clesses cf Banks. 1Taticn~l bor. 1rn r~p'"'rt~d ,:,.s mprrb rs cf brnking chcdns e --:.d JOUDS numbered 602 at the end of December as compared with b45 in June, state bank members 136 comuared with 111 in June, and nonmember banTs l,lb5 compared with l,Oo5 in June. Loans and investments of the natic-nal ban'.cs belonging to the ban..1-rin,_~ chains and grouus wer~ apuroximatP,ly ~5,900,000,000 or over one-fourth of the total for all national ban~s, while loans and investrr:onta of st?te bank Members belongirig to the groups aggregated $3,400,000,000, and of n'lnmember ban:.<S $1,j00,000,000. 0 The follo~ing table gives a surrnnary comparison for the country e.s a whole, by cl·\sses of bon·rn, for June and Decerrber 1929: HUP.1b 2r of ber.'c:s Loens nnd invpstmP.nts Members lof members Total of groups Of 811 !of {'Toups and. chairs b ."n'k°s c1nd chrins ** (In millions cf dollars) All classPs of b,r.'cs December* June 1 ational be.nks December June State bank membprs December June Nonrr.ernber ban1rn December June nJMB.:R OF GROUPS ~'D December June 24,645 25,110 2,103 1,821 58,461 53,47l..L 11,177 0,300 7,403 7,530 802 b45 21,5c.4 21,457 5,908 4,159 1,119 1,177 136 111 14,350 14,254 3,397 2,509 16,123 16,403 l,lb5 1,065 22,527 22,763 1,372 1,632 c-.:.AL:S: 237 275 es for state ban~rn are net ~vailP~]e *For 2 states tbe Decom:Jer fi and the lat 0 st available abstracts w re usPd in these casos. **Based largely on condition fitures publis~ed ir. J·ly 1929, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 (St, 6520 - 7 Princi.nal C~:aL1 and Grou,, 3<!!'"-kir g Sb, tc_§_. Chain o.nd group be"'.king has rcaCil8d its groatost c.cv'---lo:::i.ner.1 in thJ no~·th;-:estorn sta.tJs, but it embraces a considerE,,blo ~1um':)or of ba:iks and. a relatively largJ proportion of the banking reso1ucos in ma-1Y othJr states. There were, as a rr.atter of fact, 25 st:3.tes cct the emf of 1929 in v;1.1ich c~1'lin and grou:? b,1.nks consti tutGd a su1:Jsta.'1 ti:i,l ::;:nrt of tho nur.1bor of banks or of the 'uankin,; resources, as indice.tod in the follo ving table: State NTui1bor of bo.!"ks ?~;cm:) Gr s of Total grou;?S e.nc. chains - Lo,ns anc. i_!;_Y 1 ~. tm'-- n t s Of -ncm J0rs of Of all groq)s a:1d 1.:-e.n}::s chains* (In mi.11 ions 0: d.olL~rs) 1 Minnosota MichieQll North Dakok Now York Kans'ls 1,046 743 412 1,127 1,063 308 1_35 114 102 ,.,,-, 901 2,021 112 17,222 4o4 584 1,262 58 2,011 46 Iov,a Illinois Oklahoma Texas Washington 1,257 1,765 617 1,308 340 87 84 85 90 1,212 103 1o4 75 7i2 3,802 401 1,036 460 73 61 60 33 72 359 137 2,338 917 198 62 47 396 212 50 4, Nebraska South Dakotn New J 0rsoy Wisconsin ,Arkrnsas S04 337 JrOoo q6o 415 00 s4 California Massachusetts Mont<ina Pennsylvania Florid.a 437 450 195 1,560 235 49 45 45 4o 3,420 ,, 22r::~ 144 5, 703 ") r:: ,., I d..""1.hO Or egon Missouri Utah Georgia 137 234 1,277 1o4 405 41 36 30 26 22 260 1,199 162 334 All other states 6, 787 229 2, 103 11, 535 *"'50 ,461 To tal 8 '-J6 ol I 139 1,528 871 81 303 134 37 32 158 50 166 841 11,177 1929 . "':Based l::trgel:r on condition fif;1.u·cs puolished in Jul:, **For 2 states thJ Docorabc:::- fi.._'ur0s for s t-->tc bcnks 2ro not •rot availnblG and th3 l:itcst avo.ilc,blJ .:'l.~)strncts ·vorc used in° those cr:ses . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ... 8 Recent Develrnm ents. The first s 1.u·vey of d ain banking made by the Federal reserve agents for the Federru Reservz Board v,as in Decemcer 1922, the second in June 1926, the third in June 1928, and the last complete survey in June 1929. Since that time monthly st·w::ileme nts on changes in chain and group banking 1'.ave been submitted to the Board by t'1e Federal '.1.~'le data submitted l1rior to June 1929, however, are not reserve agents sufficien tly comr,_:,l0te to ma.lee it possible to compare the present situation with that which existed in earlier years, in fact even the figures as repcrt.ed six months ago have since had to be revised considera bly. It is dming the last six .nonths, however, that group banking has been exJ_Janding so rapidly. 0 Increases in the number of banl~s belonging to chains and groups since June are confin3d largely to 9 states, and most of tho gro--,th is tho result of the ra::;iid expansion of a relativel y small nu;:iber of groups, notably the Northwest Eancorpo ration of }ilnneapo lis nbich increased from 20 banks in Juno to 92 in December, the First Bank Stock Corporati on of Minneapo lis fron 12 to 73, and the Guardian Detroit-U nion Group cf Detroit which was not in existence in Jun0 but comprised 3 5 banks in Decer..bcr. Tho number of chain and group bcn.;:s at the end of Ju.>1c and Dcccin;:ier in each of the 9 states in which tL3 principal increases occurred was as follows: Number of group or chain banJ;:s Increase 1cer:-:ber D to D;,ce;-'!ber June June Minnesota Michigan North Dakota New York Washingto n Arkansas Montana Massachu setts Kentucky Total 47 49 14 21 16 "'17 13 12 12 308 135 114 102 75 72 45 45 16 261 86 100 81 59 55 32 3~ 201 912 711 1 *Some of this increase may represent simply ban ~s that 1•:3re not lmown to be or were not previousl y ,repor tcd as belongiY.g to chains and groups . Prir.cipal Chains and Groups. !tecent months have witnessed the rapid rise of quite a number of ban 1-c groups of ti1e type referred to by tne Comptroller in his recent stateme.:1t before the Corm1i ttee on :Banking and Currency. This type of bank 6 rot1:9 is 6 eneran;r centered around a cit:, or metropol itan bank througc"l means of a holcli"lb company which oms the majority of the stock of each bank. Exam;)les of these newly fonned grou2s, which are the ones in which the grea:est interest conters at :;resent, c1.re the Northwest Bancorpo ration and t: e First 3an - Stoc.r.· Coq>o1·.:i.tion of ·.li::mecpolis, the Guardian Detroit Union Group of 1;etroit, fae ?irst lhtio.alPeoples Wayne County Group of Detroit , thcl i.:;;~rinc .(ial nd Corporn.ti on of :Buffalo, and the First Wisconsin National J3cn2: group of ;.(ilwauk,e . Some https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St.6526 '--' - 9 r.,f these groups have expanded their fields of operations be:.rond state lines and in one case beyond FGcleral reserve district lines. ~e chain systems which have b0en in 0xistencc for :·Jars, in most of which the control is held by one or moro individuals and v1hich genorall? aro composed of baw::s in the rural corn.aunities, do not appear to have grovm materiall~r in recent :nonths. The p rincipa.l groups and chains, with the number and loans c:.nd investments of banks included therein, are as follows: Nat:10 a.ncl address of .ranagemon t or controlling interest Nwnber of barks in group or chain in December Loans and invest1,1ents* PR me I?AL GROUPS Northwest Bancorporation First Bank Stock Corp. Guardian Detroit-Union Group First Sccurit~r Corp. Old National Corporction First National-Peoples Wayne Cciunty Group Southwest Corporation First National-Old Colony CoJ:?. Marine Midland Corporation Transamerica Corporation First Wisconsin National 3a.n~r Angl..,-National Corporation First Securities Corp. First National .Ban~:: l1inncapoli s, Minn. Detroit, 1.~ich. Ogden, Utah Spokane, Wash. 92 78 35 25 22 $339, 754 ,ooo 439,267,000 03, 996,000 34,723,000 32,981,000 Dotroi t, Mich. Tulsa, Okla. :Boston, :•1.as s. :Buffalo, N.Y. 1Jew York, N. Y. :t.i 1 wau...1:cee, Wis. San Francisco,Cal. S~rracuse, N. Y. Atlanta, Ga. 21 21 20 19 18 18 17 14 7 705, 032,000 77 , 753 ,000 568 ,312,000 423 ,436,000 1,418,361,000 168,466,ooo 146,138,000 115,559,000 104,954,000 Nashville, Tenn. St. Paul, Minn. c;1icago, Ill. Sioux City, Ia. :Bad Axe, Mich. Oklahoma Ci t~r, Okla. Reno, Nev. 66 71 14 17 16 15 12 131,308,000 52,932,000 270,719,000 13,056,000 5,612,000 4 , 664 , 000 18,911,000 11 PRINCIPAL CHArns Rogers Caldwell** Otto :Bremer Foreman Family James F. Toy A. E. Sleeper Thurmond Brothers Geo. Wingfield *Based largely on condition figures published in July 1929. **Includes 38 banl:s formerly reported in A. B. ]eIL::s chain of Arkansas. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 Size of :Bcmking Chains or 3-roups. In order to have t:1e :Boc:-rl's record of chain and group bclil'rn include a 11 banking ins ti tuticns t.nr t might reasonably be class ifiea. as cons ti tu ting groups or chair.s, foe Federal reserve agents were requested to include groups comprising as few as throe bonks. A.s shown in table 6 submitted herewith, there were at the end of 1929 only nine chains or grou:)s that co ,::-l)rised more than 20 banks, and onl:, 26 additional groups that included from 11 to 20 banks. Folloi:-:ing is a distribution, according to tho number of DD.nks included in the groups, of the 287 bank chains and ~roups re:ported at the end of 1929: Number of grou~s with -- 3 .jank.S 4-6 banks 64 127 7-10 bc..nks 11-20 banks 21-30 banks More than 30 banks 61 Total 287 26 4 5 Type of Chains or Groups. W'nile it is difficult in many instances to ebt?in definite information as to the de 6 roe nnd method of actual or potenti2l control exercised. by tne ::1c:,,nagem0nt or controlling inter st of the chains er grou,s, three rather distinct types have been re~orted as follows: 1. Control by a holding corJoration which in the first instance is generally formed o;r interests connocted with one or 1nore of the principal barL:s belongin 5 to the ch~in. 2. Control held or exercised by the ::irincipal b2nk in the __,roup, either through direct ownership Qf stock b;' such princi::;i2l bank or through ownership bir the s tockholdors or dir0c tors of such principal ban..k. 3. Ownership of substantif'..l or controlling int.3rest in a number of bnn_-:s by a single individnn.l, fc"mily, or group of indivi<iuals. At the end of 1929 there were 53 groups of the first type, 44 of the second an~ 190 of the third, but this classification according to type of ccnf,rol is general cnly, because the relationship between the oanks is such a.s to make it i:tpossi ble in so;ne cases to ioake a definite classification. In one case, for example, a trust com:?an;y whose stocl:: is entirely trusteed for the benefit of the stocldlolders of a national ban~-: has organized an associate comna.ny, and the latter in turn owns a majority of the stock of a number of national and state banks. Fnrtherr.aore, the method of control is so:retirnes changed to :.ieet the nee.ls of the occasion, but regardless of how c~ntrol is exercised it seems to ~e quite evident that in most of the recently for;ned groups t:1ere is one p3.rticular metropolitan bank that exercises the domiTJEting influence over the other ~anks in the ,;rou:p. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 Examples of benk s or g rou_?s t~1: tL 11 i n to eacl1 of the three classes abova mentioned, on the basis of th-:J i ~uorril;ltion r e:_)ortod at th0 end of 1929, follow: Name c.nd address of :nana gewnt or controllinJ interest 1':umber of b:ml:::s in 6 roup or ch2in in D0ccm0er Loans and investments* ( In thousands) Type 1 - Control by holding cor;)oration Northwest funcorporation Minncapol is, Minn. II First :Bank Stock Cor_p. New York, N.Y. Transamerica Corp. Guardian-Detroit Union Group Detroit, Mich. II First Hat.-Peo:ples Wayne Group Uarine-Midlanc. Corp. :Buffalo, N.Y. First Nat.-Old Colony Corp. Boston, Mass. Southwest Corporation Tulsa, Okla. First Security Corp. Ogden, Utah Old National Corp. Spokane, Wash. Type 2 - Control by 1Jrincipal bank America.n national Bank First National Bank Peoples Pittsburgh Trust Co. Hartford Conn. Tr. Co. First National Bank Peoples Trust & Gu,3_rantee Co. Fletcher Savings & Trust Co. First national 3ank First National nan..~ Union Trust Co. TIJpe lfashville, Tenn. Chicago, Ill. Pittsburgh, Pa. Hartford, Conn. Tampa, Fla. Hackensack,N.J. Indianapolis, Ind. Dothan, Ala. Atlanta, G2. Pittsburgh, Pa. 3 - Control by indiv idU8,l or 6 rou-J of individuals Otto Bremer RGgers Caldwell James F. Toy A. E. Sleeper Thurmond Brothers Fo;_'eman Family Geo. Wingfield O. S. Hanson Minneapolis, liinn . Nashville, '.renn Sioux City, Ia. :i3ad .Axe, Mich. Oklahoma Cit:·, Okla. Chicago, Ill. Reno, Nev. Grand .Forks, N. D. 92 78 18 35 21 19 20 21 25 22 339,754 339,267 1,418,361 403,996 705,032 425,436 568,312 77, 753 34,723 32,981 15 35,470 512,669 167,130 37,186 21,682 25,427 23,926 8,686 104,954 l.[58,901 7 7 7 8 9 7 8 7 6 71 66 17 16 15 14 12 14 *Based largely on :::ondi tion figures ~)ublished in Jul:r https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52,932 131,308 13,056 5,612 4,664 270,719 13,911 3,303 1929. - 12 - Investr ent rr.)2-s'cs Soe:::iaUzi n2' ir. BaYJ.' St0c··s . TilP 9resPnt s·o.rVP.Y does not inch.. d.e an; insk.nces ···:··p:•e A s;ibstanti2l a'Tlotrnt of bank stoc'~ is o--·ne'i by en investm~:1t trust p11r--=;ly as an investrnent - vi thout any contra 1. S1:ch casqs, tl"rocgh thA acq:.1.i si ti on of acdi tional stoc1r, may of course PiVA ris 0 to act1,..al coLtrol over a group of ban'..rn in the co-c:rse o: time. ::'h 01·e ;_s or.e s rou9 included i:ri tr<?. 9r,Jsont com.)il~"tion th2t is n"'r:·.aos o: t':is sort -- that of' t1.1fl Gol0rnen Sacrs rraoing Corporahon of tTn· Yor 1,;- v·hich at the end of 1•123 ~-as report,,d as substenti..ally cortrolling 3 ban',s in }Te·v Yor1.c, 1 j n Ce.liforr:ia, and 1 in P-::nnsybn·n ia. , ""i th ag[TA[ate l oans a-rd inv~strr1Pnts of ~Slb,1)')0,0,...,0. Suoridiarv Inv8£trr<mt anr. Finance Co'11 J?niPs bolon_ in,"' l_Q_Q_ou-::is_ .QL_Ch,-inr . rir ste.t:.stics th,·t "rA horr> ures"'nt-"a /.IS to b,rn'~s trat bolcr,g to c:·ai:ris or g-rouus do r.ot includ" inv,,strr-:1 nt ben'dnl". hons"£, joint stoc1: 1~na 02n rs, trust comnpni s =)~1/!egr-d solely in trust ounretions, and so-cPll d. COITJ.'Tl"'rcial cr c.-di t or finarc -~ com-pani"s . The, F"dc,r~•l r0s0rv~ ego~ts 7nrq not r nqu"s t~a to list such inv,st~~nt or fin2YJ.cr institutions in r "9ortir:g on ch,.,ins end R"rouos, but in m2ny ces0s so:n0 in~orl"'Dtion ?long this lin'l T'lS f1.A.r---iish:-od. i;;~c·min"tion of t:hr- r•"-oorts i-r1dic, t 0 s t}:r,t th-. incL1sion of suc1'l institutions in til - grouD is not et E'll '.lllcor,mon, in fret t~1° ir.dicr-tio:1s · r thct - t 1---rst sor," of thi:-, grou"?s h."'d d"finit"lf in mind th" orf&nizrtion of such s~bsidi!"-ry inV"st.,,--sr.t r---id fir,::,nc" comprni.0s ['·S "/Oc1.ld 'Tl,"'r,-, it DOSSibl" for th"m to f'nfr.g,; in r.11 forms of finrnci: 1 op'"'r,·tions --- not only comm 'rciPl b['nkint:, S"vings b--n;c r·nd trust oo'lr·• tions, but r'lso in th,., unc'l,"r-:riting E'nd flot· tion of S-"Curi ty issu"S, furnishing of short-ti"TI" comm"rcirl cr"dit for finr.r cing such ourch"S"S ['_S cutori~ooil~s "I'.d hous 0 hold goods, "t C • 0 0 1 .A:r. ..,x,..,mpl:· of such r-ffili· tio!1s pr-, c " rt-, in subsid.iPri"'s of thr ·r r;ins."m:,ricr' CoroorPtio :, , sho.,,·n in th -. 11 .P.rn,..,ric:-n B0,,Jrnr 11 of "'.i'"bru.t1ry 20 . This group, in nddi tion to co ·1 trollir.g or-· b..,n,._ in }Jrw York cird s;,vr.nt"'"n in CnliforniA with aggr0grteo lor~s :,:-id irv"stm"nts of ov"r $1,U00,00),'.)00 f'");)1)"Q.rs to nPV'l cor-trol ov"r th follo·~·i:.g i iost itutions: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis r,.-,tionrl :S-·n:d t."ly Co•r!-p· ·r.y Arfl''Ti t{ l \c-1. Cvrpor~ ti OJ.1 Bi:'nC.? d 1A-·-,-.. riC-".. (-' ci 1 It• lip, Filnr, It"ly ]:-,nc.:wpri Cc'-Bl ,.,_ir Cor-ocr- t ior. Coruor"tion of _4._rr--.ricr Prcific :;·,-,tion"l Fir0 Ir..surnnc0 Corn-onny 3.:1n1:itrl.7 '/ort,e-, g_0 Col1'10<''1Y 11 Cor. pn:w of Am "r i er 11 APTicultur·-1 cr..--di t Co.-ropny Cr-liforr..i.? Joi·.- t Stoc1c L:--r..d B~ nlr (St . •• 13 instance is the Gua :cdian Dctroi t Union Group, which controlli n 6 35 bn.n 1:s :ritn loc1I1s and. iiwestu18n ts o[ to in addition $400,000, 000 was reported as controlli ng th0 followin[, financial institutio ns: .t.no thcr 1 Guardian D,3tro it Cow ·,any Guardian Detroit Co. of Calif. Guardian Safe De~osit Co. Xean Higbie Company Union Com_)any Union Titlo & Guaranty Co. lfa tional Union Com9any Peoples 1fationd Com~)any Now Union Bldg. Com-Jany Guardian Holding Com:;)any Ohio-Penn a Joint Stock Land Bank Union Joint Stoel: Lanci.. Be.nk Detroit II II 11 II II Jacl:son II Detroit II Cleveland Dctroi t Suspensio n or Failure of C:hain and Group Banks. .,\ co,1pariso n was recently made of tho Eoarci..'s r0cord of all b2..nks suspended during the ::cicrio d 1921-1929 iri th lists of be.nk chains and 6roups submi ttod as of Dcce.11"'ucr 1922, June 1926, Juno 1928, and June 1929 nnd monthl:r sup:Jlemen ts since June 1929. Duo to tho difficuit y of obtainin 0 definit0 infonnati on oa chain or group b2nldng, particula rly for t110 02rlior years, such a com;::iarison maJ' not show all of thJ susp0ndcd b.s.1::.::s that v0ro :ncmb0rs of so-called groups or chains, o.nd on tho other :1and, it iTI'.\Y include so,n0 sus:9cndod. banl~s which were r Jportod as 'oolonging to chains or groups, though tho rnanage,;1on t ma:r have opcra.t.Jd them entirely indOJ;lOndcntl3r of tho oth3r banl:s under tho sa::io control , On tho basis of t!1c best infor:Jc tion availa.blo , however, it appea.rs that~ totcl of 226 banks wiU-1 a.oposits of $102,000, 000, reported as belonging to 50 difforont ch1.ins, suspended. operation s during tho nino-.~•car period. Of this nuu1'o,Jr, 61 tanks ;vi th de)1osits 'Ihis of $35,000,0 00 wore rc:;_Jor t0d as ile.vin6 sussequcn tly reopened. nino-:,,ro3r t:1e durint3 suspended o.9nl:s co:-nparos with a total of 5,642 In other ,rorcls the chain period with d.eposi ts of $1,720,00 0,000. banks that were reportei as h'-lvin 6 SU.S)ended operation s represent ed about 4 per cent of the total nu.nber of suspensio ns and about 6 lJer cent of the total de~Jos its of all susi_)ended banks. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis St.6526 - 14-15 I StatP LPws Berrire on Chain or Gro"J.n Jan',ing . Tl e Board s 0 var0 tbe of 1 Cour.s t~e G n ral Counsel , with th assista~ ce of ious F0 d 0 ral r 0 sPrVP ben~s, re.cPntly preparod en enalysis (X-6392) of state laws aff 0 ctip.g th" cwn"'rst ip of bank stock ~y holdin~ cor~ora tions . • o attPmot has bEen madP., ho~;,ver , to classify th<> s tatP.s so as to sbow in which st.:>.tes the gro,,.t. of chain or group ban'ring is li 1<Ply to b <> rf'tnrd 0 d as H cons~ u"nc~ o: thP. nrovisio ns of stat<> laws, in fact th") analysis covers 19 stat s only, th 0 r 0 rc:aining s tet"'S apP<Jren tly not l1e.ving ado1Jted any laws on this subj "'Ct • 0 0 1'a1)1=-s on C11:.::iin or sub!T'i tt<!d to sup~l"'m- "'nt bankillt:!' , in addition to to v.-:1 · C:--1 r..,lat" to both ban~-ring : Table, 5- C-roun Ban1rin,.,., 1'h9 follov·in g tablPS ar~ t:'1~ a·oovl"' c3iscuss ion on c'1ain or groun th 0 g"1. ral tablPs ur.-viou slv r 0 f rr"3d branc½ bar.'ring ar.d to chain 2nd groun Numbnr end lol"r:S and. inv-"stm< >nts of ben~s r~port 0 d as O"lo~gin g ~o c~ains ar:d grou9s, by clasr0s of ben~s end by stPt8s, D;,c 0 mb 0 r 31 end Jun~ 30, 1929. b - .'tL"Tlb •r of baak chains Ernd groups distribut"d eccordin g to sizn of S"Stf'ms and E ccordine to typP of control, b.y stetcs, D c9mbPr 31, 1~29. 0 0 ouos, shori:1g t:·rn nu..rnb~r A comol 0 tn list of b•1n:s chains r>nJ be n"rs, by cl."ss~s or e-roup -rd :: cho.:.n of ,nts inv~stm ond lo:ms .:md bot:1 DAcnrbe r 31 "nd Jun,:, 30, 192?, hos f'lso be.:>n orep·rod . A couy of this list is p intPd E'S u,rt of th~ strt m..,nt by thn Co~ptroll-"'r of the C 'rr~ncy in P;,rt II f nol'm:.., I of Lr> h"".lri-ng s on O"fOrl" th,-. Comrr.;tt-i on BE'r:ring Brr11ch, Ch· in rnd Group brn',i ·tiv~s. or~sPnt R of ~ouzP tPA of ~nd Curr-ncy https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 16 - Summn. ry for united St':ttes nni by 011.snes of B:i:1lcs. At tho end. of 1929 t:10re ;;ero 322 b'1Y1:::s in tho United St-1.tes th:it TTere opor:iting branches. Tho tot--.1 numb0r of b,:wches o::_:i c r-1.ted by these bi"!.ks :1t foe ond of the :i'e1.r i;ns 3,547, '.li1d the ~greg--.. te lO.'l.."lS "..nd investments of the b1.::1lcs ::md tlloir br'1Ilc~1vs n::,s ~25,100,000,000 or over 4o per cent of the tob.l lo::i.ns n...-rid L1vc.:str,,-:m.ts of 'ill.b:mks in the country. Ad.ding the tot'l.l number of br1.nches, 3,547,to tl1e tot'l.1 number of b1..11ks in operG.tion in the country, 24,6~-5, gives '1 tot'tl of "tppro;cim'"l.tely 28,200 b't.,."1.king offices in the Uni tod.. St'"l.t0s. _\bout 0:.10-oighth of ::ill the b-mking offices ,rere, therefore, brx1cht!s. As sb,ted in ' tho first p"..rt of t:1is momor:mdur:1, 119 of the br::u1ch systems v:i th 1,415 br'1.nches -md. lo'1.lls :md. investmea ts of ,;; 6,300,000,)00 :101·e '.1lso r8::_:,orted -:i.t the end of t~1e ye"tr as bolonging to b'"ii1J:::: ch.'.lins or groups. 1 There r:ero 166 nation:il b·:i.nl~s tk,t vrcro oper'1.ting 1,027 bnnches -:i.t the end. of the ye'1.r, 3Ild. t!le lo;J.lls '.llld. inv0stments of tl1ese n'1.tion'1.l b'Ulk bn,nch s:.rstems o.ggreg'l.ted $9,000,000,000 or more th-m 4o per cent of the tot'l.l for 'lll n'ltion'.ll b'l.l'L.Cs in the country. St'tte b'.Ullc members oper'1.ting brwc11es 1,t, the end. of 1929 numbered. 180, their brn...-riches 1,299 1.nd. their lo'Uls 'Uld investments $9,900,000,000. There ,rere 476 nonmember b'l.l'l.ks (including rrru.tu-..1 s'1.vings rmd pri V'lte b·mks) 1.7i th lo'1.lls 311d investments of $6,20CJ ,OQ,O,QOO, 0""9ero.ting 1,221 br., .mches '1.t the end of 1929. Developmo:its Du.ring l_-:::_st six montl1s of 1929. Since the l::tst report r:.._s submi ttecl on brwch b'1.n!dnt'.; ·1.s of the end of June 1929 there lns been -:i, not incre'1.so of 107 in the tot'.11 number of br':l..'1.Chos in oper'"l.tion '1.11d a net incre1.sc of 4 in tho nu...uber of br'1.llch systems. This net incre':lso in t:10 number of br'Ulchos is '1.t 'I.bout tho s~e ::innu::tl r.'lte 1.s d.urin 6 t:1e l'lst tl'lree ye-irs. Somo of tho 1-.,rgo brr..nch b'1.11king st':ltcs, hor,over, oho·,., but little incre-ise in the numoer of br~1chos in oper'l.tion for the six-month period., for ex-unple 0'.llifor~1i ,'1., 'Uld. !.fichig'1.ll. The princip8.l incre'l.sCE for t:10 period ·:;ere in 1Torr York, Ohio, :?ennsylvwio. 'illd. :t:i.ssa.chusetts. _\.l e1ough there n'ls '3. not incre'lsO of only 4 in the number of br.'.lllch sys terns during tho l'.ls t h '.llf of 19 29, tho re ,:,ere '1.C tu'.l.lly 36 b ::m1::s oper1. ting br'lllc~:es .:.t tl1e end of 1929 th,tt h'1.d no br'1.:nchcs \7h'ltever in Jlme, t: is gross :iddi tion to t~ie list of branc h systems being offset p::i.rtly by tl1e f'l.ct tl1.'.l.t 25 br'l.llch systems wont out of existence through merger rrith other bw}::s, 6 b'.lnks susp<3ndcd op,n·'1.tions '1.lld 1 b1Ilk o.bolished. its br'l.l1Cl1es. The net incre'lso of 107 in the tot'.11 numbvr of branches in oper.:1tion in the six-month period is t~e xesult of the cst'lblishment of S2 de novo br'lilches 1.nd t:10 conversion of 31 b'1.nks into br:1nches, p'J.rtly offset by t:C1e discontinuance of 49 br.'..111ches through merger rri th other br'.1llches or otherrrise 'Uld the closing of 7 bro.nchos following the suspension of the p1,ront b'Ulks. In other ,1ords, t!1oro ':rcre 163 nevr br'1.llc:1es in open.tion 'lt the encl of 1929 1.s comp'l.red Hi th J'uno of the s1.II10 year, ._.rhile 56 of the bro.nches tho.t uorc in oper"l.tion six months 01.rlior went out of existence. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis :Sr,:mc:!1 E;:;.n1dne; since ?assa ,e of :1cFae1cen Act. At the ti ·,e t.12t the McFadcien Act was "J£>ssed, on Feori.lc'.ry 25, 1927, there were 779 ba.r.?;:s in foe United Sta.te s thet ,vere o·)eratint:, 1,923 br,,..,nches in tne 11ef:ld office cities and 971 branc:t1es located -~uts iC:.e sucl.c cities, or a tot,,l of 2,900 'uranches. Since that time there h~s been a net increase of 43 in the nurJber of 0ranch bank systems and a net increase of S47 in tne nur.aber of brenches in operation. Most of the i ncreese ro11rasei1 ts brancnes located in head. office cities , the number of w:1ich i:l;rG~secl fro.J 1,929 to 2,432, or by 503. The number of branches located outsido of head of+'ico ci ti:;s increased fror,1 971 to 1,115, or by 144. The annual increase in the number of Jranch3s has aver~ged over 200, and this rate has been maintaine d in the last six .non ths. Al though there were 206 ban1':s opera ting branches at tl13 end of l:;!29 that had no branches wha tevor when the l:fcFadien bill boca;ne a lavr, there has been a not incro2.se of only 43 in the nurn0or of branch systems since the passage of that _\.ct. This is due to the fact that 120 brend1 systems went out of existence t:1ro·.igh merger with other ban..1<s, 15 sus:::,,mdcd o Jerations and 28 abolished their branches. Of the 28 baru::s that lJ.ave abolished their bri}Ilches since February 25, 1927, 26 had only 1 branch each, and 2 had 2 branches each . 0 It is also found that of t~e 2,900 oranches tnat were in oper~tion on Fe"uruar" 25, 1927, 224 have since 6 one out of existence -- 194 having been cii scontinue d or merged with o tl1or 'branches a11d 30 going out of existence following the sus2ensio n of t,,c J?Prcnt bank. Thore was a uross incr asc of 871 in tho num00r of brancl1cs, of which 511 wore cs tablished de novo and 360 wore inC:.ep,Jnd cnt ban...s th:1t were purc:w.scd and converted into branches. Since the ::Ja.ssagJ of the McFadden Act thoro have been a number of mergors of some rat~1cr largo size branch ban'r systeu1s, thus bringing to existence even la.r.;er sys tens, the princ i:_)c).l ones bein"' as follows: Pacific Southwest Trust & Savin,;s E.:ml'", Los }.n 6 elcs, wi t~1 100 :..ra1.ches consolida ted with First lTetional :Ban.: and its one branch to form the Los ~-\ngeles- First :l:!a-cior,21 Trust & s -.vin6 s :Sanl-: Security Trust & Savir, 0-s :o-,nx:, Los .A!"l:eles, wi t•1 r:;l~ "t,rco..nc11es consolida ted 1dt:1 Los ~n 5el·:s-?ir st Nction~l :rust ~ Savint?,s Eanlc and its 95 branches to for.1 the Securi ty-::Tirst iJation~~,l Bank ~ ~ Peoples State ]2n1r, Detroit, :liich., nith G branches consolida ted ,,,i +h t1,e Wa•rne County & Home Savin.;s Eanl-:: and its 47 branches to r'or,r, ?eo_)les-W ayne Co1.:nt~.r J3a:1k The number of ·oranchas operated ~y J~ tional bDn:::s and Jy state oa~-:: menbers of the Federal Reserve Sys tom has been l'Il3. terially affec te..d by the nationali zation of a numb,ir of l;:,rge state b;.T.k tranch systems in CPliforni a, either directly or by merger v•i ti1 existin6 n.-,tion&l b,.n2·s. T.r:ese include the Eanlc of Italy of San Francisco , t.ho P.:icific Sou.thv1est Trust •and https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 18 - Savings Bank of Los J~n 6 el2s, and the Se euri ty Trust & Savings :Bank of Los ..\.ngole s, which ~1ad a total of 425 branches when the :✓icFad.den bill became a lavr. Tnorofore , it is found. that p'l.rtl? because of this fact the number of t r anches of ne tion,-:. 1 bcl!t:s incrcnsed. from 390 on Fcbr,1ary 25 , 1927 to 1,027 E't the ond of 1929, while the nu.acer of brnnchcs of state '.)J.nk members declined fro:1 1 , 560 on E'ebrue17 25 , 1927 to 1 , 299 at tho ond of la.st ?Cor. T'.ncro hc.s a l so boon a consid0ra'Jle increase in the nu.riibor of branches of nonm0mbor 'oc...,nks , of w111ch there wore 950 on February 25 , 1927 and 1, 221 at the encl of 1929 . Following is a sum::iar~r showing t:1e m.J.mber cf bra.nch systems and the number of branches in operation on Febru..'lr~- 25 , 1927 and Dece;n·ber 31, 1929 b;; classes of bpnks : Clnss of b2n:: Total - ~11 clcssos of banks Nationvl b"nks State b'lnk me,nbers State bank nonme1nbers Mu t ual savings bcnks P rivate banks Number of b.'.'nKs 012er2.ting b rr·.nches Dec . 31 , Feb . 25, 1927 1929 I Number of brarches Dec . 31 , 1g2g I Feb , 25 , 1927 822 779 3 , 547 2 , 900 166 180 407 65 4 145 189 337 50 8 1 , 027 1,299 1,115 99 7 3 90 1 , 560 s63 76 11 Developments since June 1924 , The first complete statistics gathered by t he Board on branches of botl1 member and nonmember ban.:.s were for June 1924 , at which tine 71'+ banks were reported as opera.ting a total of 2 , 293 b ranches . There was, the ref ore , an increase of a;r:1roxi1:.::i. tely 600 branches in the three years :'?receding the lf.cFa.du.en Act, about t,ie sane r ate of grow t h as has taken place since that act was :i:assed. JTational ban.:s at the end of J une 1924 were operating 2 1+8 branches , s~ato bank me,nbers 1 , 137 branches and nonmember banks (incluclinb mutual savin,;s and ~Jriva t e banks) 908 branches . Of the total number of branches in opon.tion in J une 1924 , 785 were located outside the head office ci tics 1;nd 1,508 in the hoad office cities . In the five and one-half :,ears ending with December 1329, t:1ere wzs an increa~e of 330 in the number of branches located ou tside head office cities and an increase cf 924 in the number of branches located in he0d office cities , o r a total increase of 1 ,2.54 branches . This coID9arison is shown in more detail in accompanying tables . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 19 Princioal Branch Bankine: States ai1d CitiP.s. lhe 3,547 brarichP.s in o oe ration at t h e end of 1929 w re located jn 30 states, 1,236 being locatP.d in 10 states in rhich statP-V"ido brench ban'ring is "9P.rmitted by law or implicatioi:, 2,207 in tl,e 12 st&.tes ii: which the ooeration of branch~s is 09rmitted but restricted as to location, and 54 in 8 statP.s in which the fu.rt:1er cxt nsion of branch bank-ing is prohib i t ,·,d by law. There are, t~1Prefore, branches in o~eration in three-fifths of tlH" stat,~s, but t1:1e e-re&t ma.j ori ty of the bre.n ches are located in a r8latively f~v stat~s, in fa c t tPo-thirds of thP. total nu.rnber are in 5 statPs - California., Nev: York, t!ichigan, Orio and P=mnsyl v;:inia. Four other s tat,.,s, hoV'P.VPr, A.lso had more then 100 branches in ou::,ration et th<> "'nd of 1929 -- Mas,:-echus"'tts, J:e,r JP?rS""Y, Louisic1.n[I c,nd ' 1 aryland. 0 0 What might be t,;:irmAd es 11 loct"l'1 brcnches, i .A., brenchns loc1:t<>d in th~ srunn city as tbP ner~nt b~nks, er~ largP.ly confi~~d to a f w of the urincinal cities of the country, in fact 10 cities account for l,059 or r cent of the total 2,432 local branches. -:rne nu.mbor of branch s in oneration in each of these citi s at the nd of 1929 was as follows: 0 68 ~ 0 0 1\Tew York San Francisco Los AngelP.s Detroit Philadelphia 0 0 530 *97 *201 *309 133 Cleveland Buffalo Baltimore Boston Cincinnati 85 73 65 bo *50 ~xclusi ve of thc•se branc:-ies "F.hCSP. hF-ad offices e.re located in ct~1er cities. Size of Branch '.3en1,r- Svstems. At the P.nd of 1929 there wer 18 ban:rn tbc::t v:er o ouerating mere than 30 branches, the two largest being the Bank of Itely Naticnal Trust & Sevings Association, San Francisco, and th.:i Bank of .Ar!'erica r,f Califcrnia, 1 -::s Ang91P.s, bc;th of which are controlled by the Transam..,rica Cc:ruc ration group. ThrPP. rf thP. rth,;;r lF:rgF' systPms c.lsc b-"l :-ng tc E: singl;:, gr':\up, viz., the Pe,-olf's-Wayn<" Ccunty B&n1<, the First Nr-,tisne.l Brink and th"" PPninsuler State Bc,nk ~f Detrc,it, }.'ich., v-hich had a tr:tfll r-f 153 brrnch•"S c1t th.:i '~nd · f 1929 Pnd which D.re all part of the First 1'1,1tirnc1l-P rul"'S W,:ynp c-unty group. In additicn to the 18 brench systAms that rere 'nerating 30 ~r m-- re branches at the end ~.f 1929, tl1er8 rere 41 banks cnerating 11-30 branches and 41 ·: ther ban1.~s : "9erating 6-10 branches. ~/i,re than half -:-f the branch systems, h,-wever, (445 r.ut .,f 822) had cnly 1 branch each, 150 had cnly 2 branches, and 124 had 3-5 branches. 0 0 On February 25, 1927, Them tb<:> i 1 cFadden bill became a la'l'T, there wer~ 12 branch systems with 30 sr m're branches. The fcllc~ing list sh 0 ws the large branch systems in CDPrati~n b~th en F 0 bruary 25, 1927 and DPCeT"!b,=,r 31, 1929, and th,, dispr. sition made r.f th--:se systAms which wer-=c in r1Jerati0n when the }fcFaddPn Act was passed but bav<=! since m"rg"d 11'1ith 0ther syst2.ms: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis st. 6526 Location ~nd name of parent bank Feb.2 Bank of Italy National Tr. & Sav. Assn. San Francisco *Bank of .A.merica of California Los .Angeles II Security-First National Bank II Pacific Southwcs t 'l'rust & Security Bk 11Securi ~, Trust & Savings Bank II *California Bank II Merchants National Trust & Savinss :Scinlc II Citizens fational Trust & Scvings ].3,nk .A.merican 'i'rust Com)any So.n Francisco Peoples-Wayne County B3llk Detroit II Peopies State Bank II Wayne County & Homo Savings Benk II First N~tional Banlc II l'rminsu.1.ar Sta to Ban:: Corn Excha::igc :S,:mk New York City II Bnnk of Ma.'1hattan Trust Co. II B-:c.'1k of Uni tcd S tc. tcs II Manufncturers Trust Co. II N:1tional City ]n.nl: II Public N2tion~l B2nlc II B-:i.nk of Amcric1?, N.A. Cleveland Trust Compn.ny Clcvele.nd Mo.rinc Trust Company Buffo.lo Nur:.1ber of branche'" 1 Dec. 1 1 2l (a)27s (b) (c) 98 49 45 34 ( e) 24 92 (f) 46 45 2 29 62 4o 6 14 18 27 7 52 32 237 160 139 ( C) ( C) 56 (d) 31 94 9l,. (f) (f) (g)33 "31 67 64 (g) 57 ( {!, )4-5 37 33 (g)34 57 33 *All barLl.;:s ~re now members of tho Federal rosorve system except those m.."..rkod with an asterisk. (a)This was a state banl~ member on February 25, 1927. (b)This branch system is the result largely of mergers of smaller branch systems and the purchase and conversion into branches of a number of independent banks. (c)The Security-First lfational Bank is the successor of tlle First National Bank, the Pacific Southwest Trust and SavinGs Bank and the Security Trust and SEvinss Ban.~. (d)Absorbed by the Bank of America of c~lifornin. ( e) This was a nonmember banl-:: on Fobruar,r 25, 1927. (f)The ?eoples-Wa~,rne County B:lILl.;: resulted frorT. L10 con'1er:,io , of the Peoples State B2.11l::: end t:,e Weyne Count? c.nd Home Savin 6 s ::,"nk. (g) Increase in the number of branches duo largely to tho absorption of other branch systems. Branches Located in Small Ci tics. In connoc tion with tho branc:1cs located outside the hond oifi cP/numbering 1,115 or neerl;y one-third of a.11 branches in operation at the end of 1929, it is interestin · to find that by far the greater number of these 11 outside 11 branches are located in smnll tovms and cities. Of the 1,115 outside brunches, 612 were in fact located in pl?ces that had less than 2,500 po:pul-=;tion in 1920, including 203 in C.:i.liforni.?., in Louisiana, 44 in Mnine, 52 in :fr,rylo.nd, 46 in North Cnrol ina, 34 in South Carolina, 32 in Tennessee, 28 in Vir6 inio, 21 in ;.~ississip::_,i, and 93 in 15 other states. :Besides these 612 branc:10c located in :?1-,ces of loss th.':11 2,500 popubtion, there were 136 brnnch0s in pl~ .ces tn·, t had n ::_:io::;ml:: tion of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis s4 0 I 11 outside 11 There were 281/ branches re:,?ortod ," :S being loc,,,tad in citLJs with a popul.'1.tion of 10,000 or more, but this figure represcmts lnrgel:r brr.-nches of the st2t0 wide-branch systems in California whose hoqdqunrters are in Snn Fr~ncisco nnd Los .Angeles but which have branches in such other b ,rge ci tios as 0nklr:md, Sacr.qI!'lento , San Diego, Long :Beach a.11d Pasadena. • 2;500-5,'000 £:•net 86 in"'rl <'. • 1 2l vifa popul ~t ion of - 5,000-10,0 . The first tabulation made of branch b 2,nking accordin 6 to size of towns in which the branches are located was for June 1928, at which time there were 572 branches in pl.sees having a po1)ulation (in 1920) of 2,500 or less. During the ensuing year and a ha.lf, therefore, there has been an increase of 4o in the number of branches located in such small places. Method of Establishment of :Branches. More than two-thirds of the branches that were in operation at the time that the McFadden bill became a law were so-called de novo branches, i.e., established as branches in the first instance. Most of the remaining branches had at one time been in operation as inde1)enifon t banks, heving ooon purchased and converted into branches, but in a number of instances tho method of establishment was not ascertained, The number of de novo brn.nchos has increased by 383 -- from 1,996 to 2, 379- -since tho passngo of tho McFadden bill, while tho numbor of indopondont banks purch.1.sed arni converted into branches ( including branches for wh ich the method of establishment was not rc)orted) hes increased by 264. De novo branches of national banks numbered 635 at the end of 1929 out of a total of 1,027 branches; state bank members operated 967 de novo branches tut of a total of 1,299; and nonmember b2nks ( including mutual savings and iWi vate banks) 777 out of a total of 1,221. No.tional be.nl{s show a considerable increase, since the passage of the If.cFadden Act, in the num"uer of branches resulting from the conversion of independent banks, but this is due largely to the fact that some of the large state bank branch syste,ns nationalized or were consolidated ~ith national banks after the passage of the LicF adden Ac t. The following table gives a classific2tion of the number of branches in operation on February 25, 1927 and December 31, 1929 according to method of establishment: .All classes of banks Feb. 25, 1927 Dec. 31, 1929 Nationa.l banks Feb. 25, 1927 Dec. 31, 1929 State bank members Feb. 25, 1927 Dec. 31, 1929 State bank nonmembers F,)b. 25, 1927 Doc. 31, 1929 Mutual savin 6 s tanks Fob. 25, 1927 Dec . 31 , 19 29 Pri va to banks Fob. 25, 1927 Doc. 31, 1929 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Independon t /Method of To ta.l De novo ba.IL'k: s con- /.establishbranches branches verted into/ ment not branches I reported 2,900 3,547 1,996 2,379 735 1,017 169 151 390 1,027 279 635 88 368 23 24 1,560 1,299 1,034 967 471 296 55 36 s63 1,115 627 697 174 351 62 67 76 99 53 77 2 21 20 11 3 3 7 2 ~ - 22 ~ Interstate Ermic~Ll-n1ki!",.g, T.,.erc 3,ro two insta.."lccs of bmks opero.ting brnncl10s in s tat.:,s oth0r thA.11 t:_oso i:1 ·.Lic~1. t:10 pnr0n t b:3:ll~s :ire si tu1.tcd. Th.o B1.1lk of Co.lifornLl., 1; . A,, S-:u-1 Fro.1.ci sco, a conversion of t:10 :B.::in~c of C1,1ifor:1io. into '.1 n'ltion::tl b'1.Ilk in 1910 , opor··,tes 1 br.:mch in Portl1,.'1cl , Ore., 1 L: f.3.'l,ttlc, W.:1sL, .'.llld 1 in T::tcoma, i':1.sh . , 1,ll of which bcci:rno br3.i1Chus uf ,;i,e, :P...t11l: of C1.liforni1, in 1905. Prior to 1905 they ·:rore brwchcs of t:1u Lc,r.~or -u:d S'.1n Fr.'.1.'1Ci sco B'Ulk , Ltd . , w:1ic~1 was suc cocc.cd. by the B'.mk J:f C'1.J.iforni1.. '.i:ho otl'10r C'lsO is t;,'lt of tl10 .?irst c..,_:ido:1 lh.tion1.l B'l.i~{: o.nd Trust CorrIJ.),'lllY, 2'To,1 Jersey, ·;1l1ich o:pcr::i.tos :i. br.::-,nch in Phil'1.dolp_1:i'l. . This br:;mch origin'1lly ewe into existence in 1813 . Suspension or F'\ilurc of Br'1.nch B'1nk ~s:.omc . On tl':c b1.sis of reports submi ttoci to the Fc.dorql R,.,;s,11·vc Bo·ird on b-u:k f:.ilur0s or suspensions '1."ld on brancl: banking, it 'lp:pe'l.rs th.'.1t during t~10 nino- yeo.r period 1921- 1929 , 'J, tot::i.l of la branch b::i.nl':: systems s-1.spcndod opcr'.1tions . These brn.."lch systems '.'lore open.ting 9 br.'.1Ilc:1os in hc::i.d office cities ond 71 br3l1chos outside s~.1.ch ci tics . Tl.e total deposits of the 41 bx1ks .'.1Ild their br0..:1cl:"lOS ;7oro $49 , 000,000 . Five of tho br::mch systems, 4 of rllicl1 ,-rore opor.:i.ting 1 brnnch C1,ch nnd 1 oper:1.ting 2 brs:..1.c:1.os, subsoql1.ently reopened. 1 1.tcr o~o of the systems '1.g'J.in closed. Of tho 41 br.:i..1ch sys toms t'.11, t \'!Oro ro·ported '1S h:wing suspended during the period 1921- 1929 , 29 h'l.d only one br:u1cl1- e"l.ch, 6 l"a:td bo brwches , 2 h'1.d three br').nc~1es , 2 h.:i.d four br'.U1Chcs , 1 h.'.J.d five brnnchcs ::md one h'.1d t·.1enty br:::inc:1es . The 1'1.ttor b.:i..."11::: -md its br:incLes 'l.t tho time of suspension were reported to h3.ve !".'1.d deposits of $2,805,000 . Follor,ine is 'J. sumr11.,_ry covering the suspension of brwch b'1JJ.1:: systems during tho nine- yo'U' period. Ye'U' number of bra.n9h b"Ulk systoms sus·::>ended .. '.i'oto.1 doposi ts Humber C~'lOS in I:1 he:J.d office city - of br::l-.'1opcr.- stion Outside hu'l.d office city 1921 1922 1923 1924 5 *l 1 4 $10,917,000 1 ,151,000 23,000 1,365, ~,,no 1925 1926 1927 1928 1929 2 11 3 4 10 2,209,000 7,44c,ooo 2 , 351 , 000 2 , 895,000 19,955,000 l 7 41 48 , 319 , 000 9 71 Tot1l 1 - 5 1 1 5 1 33 :;:3r'.)J."lCh svsto1ns rooncncd 1-J"um1Tumbcr ber Deposits of br'Ulcho s I ! \ I $4C,ooo 1 . 2 s14,ooo 7 - - 11 1 5,882 , 0CO I 4 p,742,000 7 1 2 2 5 *Tl:.is b :::ink reopened but closod '1~'1.i.1 -u1d is not t:.orefore includi.::d iTI. th the reopened b::i.nl:s . St . 6526 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - 23 - State Larrs P..eb,t:):_:1.g to_~~:r:1cr. Ba:1kin~. The Boo.rcl. 1 s Counsel, with t~1.e a s sistance of the counsel to tl':.e various Federal reserve banks, recently prepared 3D. up-to-date digest (X-6525) of st'-'.te laws relating to branch ba:.1::.:in.g. The sui.:mary statement that accomJ?anied t his digest, in w'.1ic}1 the states are classifiud into folir groups, is sho :m below. It vrill be noted tl1.3,t under the provisions of st.q,to larrs, state-··.:ide branch ban::ing is pormitted in 3 stat0s; it is permitted rrit~1in limited areas in 10 st.: i,tes; and in 22 shtes it is proMbited entirely (except as to bra:1.ches in operation at the time the :prohibitory legislation was enacted). Seven states have no legisL.1ti0n :::-8g1,rding branch b.'.lilking, but this includes Kentucky, in w:1icl1 tho establishment of additional offices or agencies is permitted und.er court decisions, and Michigan ':There the sta ~e banking d.epartment has raisod no objection to the e:rstabli shmen t of brcmchos in ci tics in w:1icl1 the pu.rent banl:s ore located. There were 23 branc:1.cs in operation in Kontu·clcy at the encl of 1929 and 439 in Micl1i~w.1, as comparod r,ith 13 and lfOl, respectively, ,on Februar~r 25, 1927, r,rhe:1 th<:; McF1ddon bill bcc.:i.mo a law. The District of Colu.rnbia is not includ..;ci in this summ·u-y, but banks in Washington may establish brancho s anyvr:1.crc in t:1.e district • 0 .'l.ccording to information whicl1 has come to our attention, four states -- Montana, Nobraska, Iowa and ·:rest Virginia -- h'.lve enacted legislation prohibiting tl1e est11:>1ishrnont of branc:rns since the p:1ss .'.l.ge of tl1c.: ~JcFaddcn .\.ct. The st1te of Geort;ia passed similar lcr;islation in 1927, but in 1929 t~J.G law \7as again a,nended to permit the estn.blishmen t of brancl1es in head office ci tics, provided such ci tics have a population of not less than 200,000. In 1Jc\7 Jersey the state law rras amondod in 1927 to perr:,J.t tho establishment of bnmc::.cs under the sarnc conditions as govorn n1tional b:mks. In Ponnsylvanio., lcgisl:1tion was en8.Ctcd in 1927pcrmitting the osto.blishmcnt of branches rri thin tho corporate li1ni ts of those ci tics in which national bo.n:!.cs vre":..·e op0r:i.ting branches or. March 1, 1927. In Vermont legislation vns recently enacted p0rmittinG the ost.3,blishmont of 1,gcncios, '.7l1ich for :tll )ractic3,l purposes seem to be the samo as bro.nchcs. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 0 st. 6526 .- 24 SU:.:~\RY OF ST\':::E LAWS St:1tes permitting stci,te-•,-,ide branch ba.n_dng / St'ltesprohi bi ting St .1 .tes permitting br'J.."1Ch ban:ting \7i th- br.J.Uch banldn 6 in limited. ci,reas _'..rizon:1 Californi:1 :i:lel1w'3.I'e ::,,,ryland Eorth C'1rolin:1 Rhode I sl3.Ild South Carolina Vermont (1) Virginia Geor "'ia ( 2) Louisiana (3) :.:1.i ne ( 4) .:1.ssachuse tts ( 5) :.:ississippi (6) :~ evr Jersey (7) reyr York ( 8) Obio (9) Pennsylv3.U ia (10) Tennessee (11) St1.tes having no legislation regarding branch banking Kentucky (12) ~:ichigan ( 13) Uevr Hampshire Eorth Dakota Oklaho!Tl.'.), Sou th Dakota ·;1yoming Al'lb3JT!a Ar~::ansas Colorado Connecticut florid.a Id:ilio Illinois Indiana Iov1a K3.I1S'.1S ..~innesot:1 l.'.i ssouri l.:ontana :rebraska :Jev-1.da Nev, .:exico Oregon Texas Utah ifashington West Virgini3. Wisconsin TOT \.1 • • 9 rCT_\L • • • 10 iOT.\L • 22 TOT.\L 7 (1) :Io provisions regarding branches but State-wide establishme nt of 11 3.gencies" perr.1itted. (2) City or mu.~icipalit y. (3) ::unicipalit y or p::trish. (4) County or adjoining county. ( 5) S.'J.me town. ( br) Sa.me city. (7) Same city, torm, tormship, borough or village. (B) City limits. (9) Same city or city or village contiguous thereto. (10) Corporate li ,nits of same place. (11) County. (12) lTo provisions regarding br3.nches, but court decisions permit establisbment of additional offices or .3gencies to receive deposits and pay chec.-::s. (13) "Industri-:u ban!~s" m:w establish br'\Ilches in city or vill ge of head office; but no provisions covering establi~une nt of branches by other b.:mking institution s. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis st. 6526 St. 6526 TABLE 1 - NU:{BER AnD LOAJ.IJS A::JD INVEST:,Ji:NTS OF ALL B_.\}JKS AND BRA,"\JCHES IN THE UNITED STATES _\ND OF BRAiJCH AED CHAIN OR GROUP R-\N"KING SYSTEMS, DECEMBER 31, 1929, BY CLASSES OF BA1.lfKS (Loans and investments in millions of dollars) Total-all classes National banks State b.ank members of banks Number of Loans and iTumber of Loans and Number of Loans and banks ( or investbanks (or investbanks ( or investI branches) ments ments branches) ments I branches) sUl banks (bead offices) in United States* Branches Total -- all banking offices . 24,645 __ _l!54 7 28,192 1,984 Banks belonging_to chains or groups but operating no branches 98 901 1,129 1,186 .2,18 4,913 757 2,825 6, 26~- 2.:s that do not belong to chains or groups but operate branches: Head offices Branches 703 2,132 18,839 Inde:9ena.ent unit b ,'Ul.!cs ('b-mks th'lt do :10t belong to cl1nns or groups 3.rld do not oper~te branches) 21,839 1,119 l,~9 . . - https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22,527 21,584 119 1,415 - 14,350-4· 58,461 Eanks belonging to chains or groups and t'J/= rating branches: }had offices {p3,rent banks) :Branches I 16,123 1,221 17,344 7,4o3 1,027 8,430 (a) (a) Nonmember banks ( including mutual savine:s_ and uri vate banks) Number of Loans and banks ( or investbranches) men ts - ·- 45 550 3,083 38 600 2,496 36 265 686 121 477 5,9o6 142 699 7,448 440 956 5,484 6,480 9,770 841 3,505 14,51s 15,171 (a) ( a) 28:J . - - *Excluding private banks not under State superv1 s1on, For two states the December figures for State ban.ks are not available, 3,nd in these cases the latest available abstract was used. (a)Separate figures not available. T.u3LE 2 _ :·uM.BER OF St·c1.tc . _ED Total number of banks (Head offices) ST \.TES .~.:. ab .'.ll1la \.ri zona .\.r "'..r....:,...--1 s as Californi a Colorado Connectic ut DJlaware :Ji st. of Col umibia fl J;-id.a Gecrgi-i Idaho A llinois ~ ndiana 9 0''i;). J..a.nsas Kentucky Louisbn3 . .:'.).ine .l"ryl md : : ':l.~ sachuse t ts : :i c:-iiJ'l.'l _..innesot:l. "''1'.~i ssi ssip;;>i .l.issouri Jon t:m'l https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24,645 350 46 415 437 274 237 47 41 235 405 137 1,765 *981 1,257 1,069 31::PCS .urn 3R.A::JCEES :u.--rn :JUliG:rn. OF BRANCH .urn CHAIN OR ·GROUP :B.lliKL!G ·sYSTE.I.S, BY ST;\.TES, DECEMBER 31, I Total number of branches 31241 19 22 3 863 - 13 24 - 39 - - - 9 - Nu.~ber of banks that belong to chAins or .e:rou-os OiJerating Operating \ Number of no branches! bra.'lches brai.1ches / operated rotal number of bi:1.'lldng offices 28 192 369 68 418 1,300 274 1,984 22 6 72 41 16 237 60 65 235 444 8 3 I 137 1,765 990 1,257 1,069 - l~o 19 ' 119 1,41~ - - - 8 - 3 41 34 16 87 88 1 - 13 3 2 5 - 572 225 133 230 450 28 106 63 124 161 600 331 196 354 611 32 13 743 1,046 311 1,277 195 439 6 25 1,132 1,052 336 1,277 195 109 306 20 36 45 26 2 1 - g - 7 - - 547 - - - - 703 5 7 2 45 - 20 - 5 13 9 21 53 353 6 2 - 2,132 19 22 3 316 - 7 12 13 24 13 19 - - - - 21 '829 323 33 341 343 253 229 37 29 195 370 3 - - 4 - 7 4o 19 30 75 15 97 42 124 108 549 175 102 200 330 36 36 572 733 230 1,241 150 10 - 23 - st. In o-ocnchmt unit banks 96 1,681 961 1,170 981 - - - I - - - Banks that do not belong to chains or groups but operate branches Number of Uumber of br311ches b311'.:s .1929 6526 T.IBLE 2 - (Continued) • - --- __ ~ . 6526 .1. . l Total ( number of b-mks (Heo.d ':£fices) braska vada •· J i7 :!G.mpshire ~ew Jersey ~ew Mexico 804 35 123 568 56 1,127 ()r·egon Pen~: syl vania Rrccle Island A n,_th Carolina ~ uth Dakota 234 1,566 nnessee Texas Ukili Vermont Virginia ·;J.shington 1.Vest V1.rgini3. 1 i 'i sc on sin 1:,'yoming https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Total number of branches Total nu.irl> e r of banking offices Number of banks that belong to cl1ains or e:rouns Operatinb Operating Number of no branches branches branches operated Eanks that do not belong to chains or groups but operate branches Number o: : Number of b'3.Ilks j branches I ,1J.epencien t unit bwks ---'--"---- Wew York :{orth Carolina North Dakota Ohio o::13.homa 4 St. 416 412 1,015 2 - 103 722 77 268 617 33 217 387 484 73 13 47 9 13 27 42 1,849 493 412 1,233 84 18 271 83 114 3 617 85 1,445 10 21 20 11 57 204 1 68 552 1 5 345 9 21 n4 340 297 969 86 14 61 1,308 535 86 1 172 2 2 61 297 1 274 10 957 J32 73 185 35 57 474 250 11 37 21 31 7 10 26 57 377 298 13 7 104 937 39 451 77 52 36 84 123 460 47 18 41 387 729 3 235 68 2 22 1,751 104 060 _, 2 1 1,308 104 806 35 123 671 56 39 61 1 2 2 3 1 4 5 5 32 *Includes June 30, 1929 figures for State banks **Includes October l.~, 1929 figures for State bwks 197 326 431 1,224 73 96 435 263 297 397 54 Ci.mounts L1 millions of C.oll.,,rs) - ~]3'-.J.;1ks ~ -that ----~:i3"..n.rn t:1'1t belon:r; to do not United St ·J,tes _ _ ch::i.ins or {;:roups belong to ch1.ins !ndc,,cndcnt ( includinb Oper ·:-.tin.g ---r::/Opon,tinc:; or groups but unit / i b r'.lllchcs ) no b r'U1ches br."11ch es oper'.'..to br.1,i1cl1e_f_"~ ' - - -banks ---- 1- ~11 b'.ln~:s in St1.te UNI TED ST i':L':2S .U-:i.b'.1Ill'1 \.rizon3, \.rY.:'1IlS'lS C'11ifornb, Color.,,do 58,461 4,913 ~3 2 32 18 19s 81 50 3,420 262 178 Connecticut Jel'),W"..re Di st. of Columbi 'l Florid1, Gcorgi'.:1 1,336 37 !d'Jho Illinois Ind.i :ma 31 3,802 *897 732 IOW'l 30 167 1 253 134 31 245 334 6,264 13 25 2S, 4~-5 237 155 1,339 553 18 ,839 2 1,350 232 1,299 60 qg 124 135 28 1l.:-o 26 44 2,590 830 37 1,212 19 90 29 22 692 4o4 46 Kentucky Loui si '.1ll.'.1 r.hine :li1.rylmd M'.1SS'.1Ch-.1sotts 554 429 433 837 4,225 37 70 17 21 231 360 165 730 1,043 521 2,311 :,ii chi gm ::inncsot3, :-ti ssissippi )lissouri non t1,n3, 2,021 302 901 402 960 225 151 **222 12 1,199 144 153 Sl 3 359 62 :::::ms'ls iifcbr1.slc'1 3£5 N ev:1d'.l 2,388 New Yor:r ]'orth C-:trolin'1. .Horth D:1,ko t'l Ohio 01:1 -iliom1. Oregon Pennsyl v·:i..ni 1. Rhode I sl:1.11.d South C'.lrolina SOU th Di'lco t 3, Tex1.s Ut.3.h Vermont Virgini-:i, Vhshington ·11est Virgini '1 Wisconsin Wyoming https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 81 316 27 8 20 17,222 2 c:'.O ~r 1 , 785 370 2,691 53 32 401 103 2So 82 5,703 663 533 169 11 250 551 460 135 142 58 10,362 151 4,349 219 1,379 1,226 1 177 3,093 147 1,507 233 57 23 104 50 126 1 120 77 22 70 29s 104 90 211 932 112 68 345 917 1,163 38 54 137 162 239 18 236 430 180 311 1So 3 1,036 534 313 63 41 112 252 1,ota 311 ~Jc,1 H.-urr::.,shi rc.; ;Jew JGrsoy ]'ow Mexico Tennessee 91 358 135 27 222 191 360 3 4o *Includes June 30, 1929 figures for StC1te b:mks. **Includes October 4, 1929 figures for St1.te b'IDks. 269 345 665 36 T_\:BLE 4 - ]U},ii,ER. _GD 1o_rns ,urn .urn rnVEsT:A:E:fi'S OF ALL ~-~U3ER B_\i::Ks St . 6526 rn EACH STATE' 1929 OF M:Bi-.IBER B. JKS THAT OP~Jn.TE BRANCHES OR BELONG r_ro GROUPS OR CIL\.INS , i3Y ST.\.TES, DECE,ffiER 31, - - St 1. te ( Lo'l.Ils :md invost,ncn ts in millions of dol11rs) Tob.l member b'IDks Member b'l.Il'!.:::s that belong Member b-mks th1t belong Aember b.:mks th3.t do not belong to ch'1.ins to ch~ins or groups to ch~ins or 6 roups th'lt belong to \.11 no and opcr1tc or Groups but but or ch~ins or groups mcmbt.;r b'.l.Ilk:s br'.lnchos brwchcs ouerato o-oor'1.te brwc11es no oocr1 to br-:u1ches ----- Lorins Lows Lows Lo-:ns :,o '.lJl s '.1.Ild inNumbt:r :md in'.lild Number ~~umber -md indumber !Number '.ll'ld investments ts investmen vestments vestments vestr.:ents ·-· Ui:rrr;n ST.\.TES 8,522 35,934 1,201 22,659 855 3,726 _'__ i ZOn'l. '-.r _::r:\n s ".\ s C'1.::'..i forni 1. Color'l'o 119 17 94 217 123 211 42 125 2,474 218 14 3 17 43 11 31 21 33 2,124 23 13 1 17 26 11 31 6 33 159 23 Co_..r.ecti cut J<,11."J'U'C J" ~t. of Col. :SJ 0rtc..1. I r i~ 67 20 12 61 115 306 30 127 16): 245 4 2 6 4 l~ lQ HS 4 47 82 120 176 60 54 2,575 4~6 350 203 15 29 5 34 25 26 919 39 69 26 15 12 6 5 57 180 196 IS loL~ 1,310 ! I _J. "b '.lI:l'.l -i1 : J:lo ois Ir.di-m'l :'.:o:·:'1. Z'l..11S'lS ,.,., 5''' 234 291 252 .,/ - ' I ! I I I ! I I - I - 19 11 120 1c:; ., 25 26 919 5 69 26 9 5 5 31 17 15 29 3 34 83 5,579 - - - 4 1,018 - - - - - 29 I I - 1 - 22 - 1 ·5 42 55 85 177 323 233 1Lo 5 322 1,691 :~ichig-:m ~innesoto. ~:issi ssippi https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 273 276 38 1,460 535 77 73 134 3 1,236 469 9 - 1 2 ( ") 15 105 14 130 21 92 350 195 13 - - - - - 4 77 947 112 47 82 - 12 - - - 12 - - 1 lf 63 13 6 l~2 97 302 33 45 l~5 515 229 257 227 23 1,656 397 281 177 130 30 14s 87 127 158 3Gl 200 142 35 44 69 I I :t(entucky Loui si 'ID·'.l ::1.inc :'1.ryl 1.nd. :'.a,. s1.chusot ts 13,275 - - - 7,321 - - Wumbor Lo'i!ls and investments 13,354 2 6 - ·u''l.il'k:S 263 135 3 II Ind0:ycnd nt uiii ·~ t.:CiTl~JOr - I ' I i 24 71 32 132 2 143 288 3 I i I l I 10 764 23 62 166 3 164 4 75 21 2 931 181 20 162 3 1 - - - - 87 13 3 6 1 5 1 - 1 49 BO 120 224 66 6S T,\BLE ' ' 4- . (Continued) > ~ St 3. te - Tot:i.l member b-mks Member b'Ull~s that be long Member b'.mks that belong Member bMks th'lt do not th'lt belong to to ch'.lins or groups to chains or groups belong to ch'lins groups or chains but oper:1te no .'Uld or groups but oner'ltes brwches --~o_b r'.U!._chc s onerate br:mches oner'lte br@ches ( 103.llS Lo1ns Lo·ms Lo·ins L0'.111S }Tuffio er / n.nd in:i.'Turnber 3.nd inNumber and inNumber 3.Ild 1nd inNumoer :vestments vestments veet,.1ents investments vestments - souri t'l.."l::J. ~;eor1sk'l. Yev'l.d"t :!1..,w E:Unpshire ::e·· Jersey :Je,, ,:exico 'Je•,1 York :-ort:.1 C-rolin'l _, 0rth ~-:i.~;:ot3. All mem·oer bmks 187 856 88 113 150 l~O 10 18 57 73 3ru o. 1,525 30 29 606 11,005 72 174 122 71 14 21 24 3 137 69 .,,.,4 8 - - 69 5 124 6 44 816 2 9,798 57 44 - - 14 21 22 3 32 5 55 137 69 46 8 . - - 98 2 170 - 44 44 1,958 331 214 3,705 3~ 30 55 24 54 7 1,247 97 75 1,700 303 2 55 23 21 1 30 97 74 539 7 Sou th C'lrolin 1 South U3.kot3. Tennessee 'Iexas Ut"l.h 55 101 104 639 42 98 69 285 061 86 6 34 15 28 10 45 37 162 92 32 1 34 6 28 10 3 37 6 92 32 - ·;er:nont ··irgini1 ·.7:::s. in 0 ton st Vir 6 ini.'l. · isconsin ·;;yoming 46 172 146 131 172 28 70 391 317 202 l+80 1 11 32 1 156 171 - 1 - iJ ' '1 ; s:rl V'Uli::J. de Isl '.l!ld . ( https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34 - 24 10 - 219 15 1 - 30 100 10 46 15 -20 - 15 - 388 254 120 948 14 Ch.:.o C~J -:1hom1 8 - - 3 4 1 5 - 1 1 - - - - - - - 1,692 2 - - 109 - - - 29 - 8 - 609 54 6 7,936 57 25 1,163 128 142 1 29 5 1 983 154 - 5 - - 54 - 99 - - 11 1 1-56 2 - - - 135 - - 42 4 - - 69 - 57 - - - - 3 - - 38 - st. 6526 Inu.c-oe:nd.cn t uni 1; · fu~mb c.:r 1'1.~:s lfumber 173 67 136 7 57 Lo:ms n.nd investr:1ents --·----- 719 44 136 10 73 295 24 542 66 7B 709 28. 1,207 117 27 358 239 96 894 7 711 234 139 2,005 25 49 67 89 061 32 53 32 123 7~4 45 161 114 131 14s 18 69 235 146 202 261 19 6526 St. ----- TABLE 5 - CHAIN OR GROUP K\l'lKING AT THE END OF DECEMBER AND JUNE 1929: Summary by states and classes of banks, showing number and loans and investments of banks belonging to chains or groups. (Figures of loans and investments for both Deceraber and June are based largely on June 1929 Bankers Directory, and are in millions of dollars) : Stq,te UNITZD ST\.TES Alabarra .\ri zona A;: kansJ.s California Colorado Connecticut Jelaware Djs:. of Columbia Florid.1 Georgia , Total Dec. IJu,'1.e I II 8 3 - 'Na Kansas Kentucky Louisiana '.~!Oline :.rn:.:yland Massachusetts 11 - 4 3 - - - - 2 1 - - - 22 19 9 14 3 5 41 84 17 87 83 la 79 10 83 85 11 20 3 33 24 11 4 9 1 1 1 16 10 12 4 10 5 10 6 5 4 6 2 45 33 27 - 1i - 136 43 20 4o 0 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis lTu..'I!oer of banks -,J.tio °). .~.::. ! State member Nonmember D.;~ .-fJ~e Dec. J June Dec. [June i 12,103 1,821 802 645 22 19 13 10 1 6 1 6 I 72 55 15 10 49 51 29 30 I 16 16 11 11 linois diana Fichigan ilinne so ta .Ussissippi Missouri :t.ontana --- 135 308 21 36 45 - - 19 2 31 22 - 19 2 - 7 86 23 9 I 25 2 261 132 103 2 2 21 34 9 9 I 5 8 ; 5 321 16 Total Dec. I June 111 1,165 1,065 11,177 32 9 9 18 5 5 -2 43 50 55 18 1,528 19 3 30 5 5 - 4 3 -4 21 4 26 55 13 53 63 - 8 1 1 1 - - - 3 4 4 7 - 6 11 12 2 82 174 19 22 24 - 5 3 3 - 37 1 - 8,300 7 18 41 1,476 30 - 1 Loans and investments State Member National June Dec. Dec. I June 5,908 31 6 22 952 23 4 - 4,159 7 6 15 848 23 3,397 - - - - - 11 225 - - - - 134 166 129 157 120 144 94 143 - 26 52 37 1,212 41 90 46 37 996 30 73 44 17 7~ 68 24 17 663 4 51 22 190 22 1 1 4 3 124 33 70 8 33 53 78 30 15 8 30 10 4o - 8 871 :UO 762 281 65 1,262 584 156 15 19 20 I 158 81 21 428 269 15 157 45 366 467 8 26 41 21 194 7 - - - J - - - 8 26 13 2,509 - 29 8 51 62 Eonmember Dec. I June I 21 9 11 226 1,872 1 12 17 350 7 33 1 - 14 9 61 22 1 1 - 14 2 11 293 14 21 20 1,632 1 12 14 4o2 7 - - 1 35 1 11 271 3 21 20 - - 7 3 55 3 43 73 225 36 25 708 - 2 - 111 29 - - - 348 2 188 115 59 74 111 23 20 12 - - 8 8 20 9 St. 6526 'j:A3LE 5 - (Conti:med) Total Dec. June St:1.t0 - ._,br~sk.3. v~ '.l ,w Hamr>shire :- 0v1 Jersey :1ew Mexico 73 13 I 11 : c·.r York :Torth Cn.rolina l ort: Dakot:1 Ohio 0}:l orna - nnc see :c.xas TJt 1h ·,'crl!:on t 'rirGinia '""'l.shington .. est Virginia ·-;-i sconsin ..yoming . ( https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60 9 102 114, 25 I 5 ' 14 3 26 5 81 52 45 18 I I - I ,..,. ~l), 100 I I I I I i I I ! I II 1, ,,I: June 62 27 23 46 a) 396 3 358 3 97 2 98 2,011 1,571 624 576 58 41+ 30 89 51 10 50' 12 I 20 4 17 3 16 32 :o jl 3 1 1 70 1 30 36 103 96 44 31 97 5 10 1 5 10 1 3 3 13 23 1 1 27 12 23 1 1 27 32 803 153 8 47 82 782 153 8 39 71 344 7 3 36 64 34 7 3 2& 3 4 21 56 16 15 55 17 144 10 50 1 92 89 50 105 73 62 62 29 189 79 212 22 205 22 I I 56 Dec. I lS 4 I Loans and investments State Member Hational June Dec. Dec. June Nonmember June D8C. I 22 3 I 16 Total ~~c. I 68 30 I ' - I 45 I 85 82 36 48 3 2 61 33 48 3 2 54 18 15 1 ·1 31 16 15 1 1 ·24 32 84 26 1 23 79 27 11 8 25 21 6 6 1 14 - I 2 54 0 l t ron '? ,-:11~:.:.·l vania }fooci...: I slruid - ~~th Carolin~ th 1.:ot:1 r-TumbP-r of banks lfa.tion.11 State member :i.~onmcmber Jun0 Dec. June /June D3c. I- I I ! - I I I I 3 4 I I I - II I 70 36 I - 3 14 9 16 12 13 14 109 76 190 1 184 1 1,238 861 149 134 14 2 6 14 10 86 4 4 9 2 54 7 3 374 142 3 352 142 2 2 8 86 4 4 9 29 14 3 14 3 44 12 18 30 12 13 154 63 15 1 20 15 131 15 175 15 31 30 0 6 1 I 75 58 32 28 59 - 53 32 I 21 I 22 ! 9 19 9 3 1 l+4 1 1 37 22 36 - 34 22 I r - CH_\.I:~ OR ~OUI 6 K• :::'_'GLE each sb.te, distrib-1ted. co Total number of groups* St:ite u.[I~D ST'i.TES rne 281 54 .i.l ab 3I1la .'1Xi zona \.r:::ansas California Colorado 4 1 - 1 - 1 1 5 1 1 3 1 - 1 1 1 Co:.-rnecticut Jel'l':!are Dist. of Col. :?lorida Geor;i3. 1;rr_ 1 3 3 61 2 1 1 - 6 5 - - - 2 3 1 3 2 3 12 3 12 19 1 1 1 2 5 4 13 2 l~ 2 1 2 3 - 2 2 - - I cl:,J.10 Illinois Indio.n-:t Io·:a K-msas Jer of groups L1 .l.'l' T:-!::-; L~D OF JEC:;:~::n 1c:A irn~ to size .:.ind according.,~ ty:1e of croup. St. 6525 ]u1n0er of groups :Tumber of groups controlled b;y Control IndiHoldin 6 4-0r Over 20 7-10 ,11-20 3 vidcomB3.ll!':S banks banks bo.nl:s banl::s jbanks panies unls Kentuclcy Louisian:1 ::aine }'.arv·land :~as sachuse t ts 2 2 5 ·achigan :~inne sota ::i ssi ssi";?pi ·:i ssouri · ontana 11 37 3 7 2 ""febras~;:a }Tevada :,1e·,1 Ham-:)Shire :re,,1 Jersey :1 err :.~exico 10 1 1 1 1 1 - - 5 1 l.~ 2 1 3 1 - ~: e·, York :Tor th C3rolina ::orth Dalrnta Ohio u~:l ,homa 20 7 8 2 2 - 8 1 Orebon ?e:msylvania Rhode I slan~ South C3,rolin9, South D'.3.1..:ota 7 12 1 4 0 - J ~e:X,'1.S • 0 ··3.shin 6 ton .:est '!irginia ·::i scon sin "'yo!Iling 7 1 - l, .,. 2 1S 4 :.'e,rnessee Ut:;i,h •· .:lr"i"lon t irgi11i3, ,- - 1 - 5 - - - 1 l~ 2 1 - - r 1 - - 8 2 3 2 - - 2 0 1 ) 1 4 4 - - - 3 2 - - - - I I I I 2 3 - 1 1 - - - - 1 - 1 - 1 - 2 9 1 12 19 1 3 1 - - 2 1 - 2 1 1 1 - - 3 1 1 3 3 - 8 - 34 1 2 5 - 2 - - 10 1 1 10 4 1 - 1 12 2 b - - - - 1 7 - 1 1 - - 1 1 - - 1 - - l - - 5 I 3 1 - - I 5 1 1 - \ - 1 1 1 - - 1 - - 1 2 -t, - - - 3 - 1 - - - - - - - 1 3 2 3 - - - - 1 - - - t:. 2 - 1 - - - 190 - - - 1 1,r -r r - 2 2 3 5 12 - t, 3 2 -, 2 1 9 2 3 1 - 15 - 4 6 10 - 3 - - - 1 20 - - - 1 - - 1 1 44 ~) - 1 1 3 1 1 - - - q 26 7 1 - - - 7 1 3 1 1 - - ,. 6 2 l.~ - - 5 1 14 3 - 5 - 5 5 *Represents number of t:roups •:rl1ose headquarters are located in the st'1.te, and not the number oper,:,.,tin 6 in the sb.te, s some of the groups oper~te in several st-:ttes. r, ._, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7 - TXi31 rsu· ~.! ~B.Y OE' B~ H- 9• ;IU:TG 1:ri THE UNI'.i'ED ST_\.'.fE· - 1929. st. 31 JUJ."1e 30 1929 1929 June 30 Feb. 2:~ 1927 1928 24,6l~5 822 25,950 835 1Dec. I NU: :BIB OF :O_\iffS Tot'.11 • • • • Oper3.tiu b branche s By cl~sses of b.'.lllks: 25,115 818 By loc~tion of branche s: 517 Only in he~d office city II 257 Onl~r outside ti II Bot~ in md outside he1d office city 48 779 189 387 50 8 4 518 108 191 387 28 ( 3.) 391 283 526 262 252 l~g I S526 June 30 1924 *26,973 145 164 190 398 62 :rat i on:i.l b '.l.!11,;:s St1.te banL members St-;i.te bank nonmemb ers . ::u.tu::i.l savings b::i.nks ?riv3.te bmks . I 4o 47 By pop:.1.l'l.tion (in 1920) of cities in ·:r: ic11 p'.lrent b3nl::s are loc1.ted : 100, 00'.) or more 50,000 to 100,000 25,JOO to 50 , 000 Less tb.an 25,000 . 0 By size of branch systems: • . • 1 brc1.nch . . . . 2 bro.nche s 3-5 branche s . o-10 branche s 11-30 br.:mche s Over 30 br3.Ilche s 351 81 75 315 359 g4 70 305 372 81 66 316 353 65 61 300 41:-8 443 4l~6 150 124 41 153 130 37 38 17 469 150 126 35 41 14 127 124 35 35 12 3,230 2,214 1,016 2,900 1,929 971 la 18 :,U:'BER OF Kt. C}[C;S To t~l . . . . • • • . • • • • • ...• In head office city . Outside he1.d office city • • • 3,547 2,432 1,115 3,440 Loc1.tio n of "outside II br'.l.Ilche s In pl:1ces \7i th popul'),t ion of Less th3:1 2 , 500 2,500 - 5,000 5,000 - 10,000 10,000 or ovor 612 136 86 281 591 133 2,362 1,078 572 123 79 237 34 270 By classes of bi1~:s: lhtiona l b:mks . . St·1.te b~;: members ... St1te ban~: nonmemb ers ::utu:11 s·wings b,n1l:s • Pri V3. te ba.nl~s ;:ethod of est:1.blis h:nent: . . • De :i:-ovo (as branche s) Indepen dent b::ufr::s purc1'1.s ed wd converte d into br'.l11ches 1Jot rc.l.)ortc d . . . . . . . • • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10 1,996 <J73 30 99 7 2,379 2,329 2,214 1,017 151 958 553 163 153 *'. 1C1.rch 19 27. (a):Tot sep'.lrat ely b.bulato d.; included vri th 11 (not :i.v".ib.b le) 390 1,560 863 76 11 941 1, ~~2() 1,027 1,299 1,115 2,293 l,J08 7G5 2~.g 1,137 903 (a) ( ;\.) 735 169 st:i.te b'l.,ik nonmemb ers. 11 •• TXBLtJ 8 - NUMBER OF R,?1:3 O?F,R '.Trm R.°'-tANCnES :urn Nm:IBER OF BR.i\:JCH.ES rn O?ERAl'IOi-T, Jffi,JZ 1924 - me. 1929, Humber of ban~:s oueratin1 branches Dec. Feb. June June BY ST.\.TES St. 6l52 6 Number of branches Feb. Dec. June June 31 1929 30 1929 25 1927 822 166 180 407 65 4 818 164 190 398 62 4 779 Total .\.rizona California Delaware Dist. of Columbia ~.hryland Uorth Carolina Rhode IslMd South Carolina Vermont Virgi:-iia 216 State wide branch banking permitted 215 226 237 l, 286 1,265 Total Georgia Kentuclcy Louisiana .Maine Massachusetts l.iichigai., M.i ssi ssi lJJ?i Mew Jersey new York Ohio Pennsylvania Tennessee lI:JITED STATES Total N<J.tional State member State nonmember ~,futual sf.lvin6 s Private 30 1924 108 19l. 387 28 72 6 99 10 35 40 11 8 11 27 4o 9 9 39 33 37 31 581 16 10 42 24 578 16 9 42 24 86 61 11 53 106 58 81 31 7 12 30 39 11 11 7 8 5 30 1929 1,027 1,299 1,115 99 3,440 993 1,298 1,046 96 7 * 7 54 7 11 33 42 11 12 7 53 31 1929 5 25 1927 30 1924 2,900 2,293 248 390 1,560 1~137 863 903 76 * 7 11 22 22 863 13 24 124 77 35 57 10 61 861 12 23 125 77 35 50 1,120 23 762 14 20 113 74 29 25 60 So Jjc 835 20 533 18 19 88 66 21 20 Branches restricted as to location 88 62 11 55 106 55 80 32 526 21 5 41 24 79 63 11 14 106 53 82 22 447 21 4 3l~ 23 61 63 11 14 77 51 67 21 2,207 2,121 39 34 28 26 106 108 63 61 161 154 439 433 25 25 103 103 722 682 268 259 185 169 68 67 1,726 1,397 53 39 12 13 106 54 133 98 l.~01 332 25 25 21 21 362 517 231 203 131 93 55 53 l~ Br~nch banking prohibited by law** Total .U ab '3.IIla Arkansas Florida Indiana :unnesota Nebraslr.a. Oregon il/3.shington Wisconsin 25 5 2 25 5 27 5 30 5 2 2 2 54 19 3 54 19 3 1 3 61 19 3 s 1 B 19 4 4 4 4 2 2 2 2 2 2 3 -9 6 2 2 2 2 2 1 1 1 1 1 1 1 1 3 6 3 6 4 5 5 9 5 6 7 9 9 9 No branches in operation: 7 7 6 Colorado, Connecticut, Idaho, Illinois, Iowa, K311sas, Missouri, Hontana, Nevada, Hew Mexico, Tex:1s, Utah ·nest Virginia R9__:p_rovision in State law regarding branch banking. Ho branches in operation: Ne,1 Hampshire, North Dakota, OJ.r..la.homa, South Dakota, ·.'Jyoming. >tCJot sep::i.rately tabul3.ted, *'4<:Bro.nches reported were established prior to prohibitory legislation. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11 TAi3LE,. 9 - ~\.T~.S OPER,\TEi· States 822 Total ~\.rizona California Delaware Dist. of Col. Har;yla.nd Horth Carolina i.1..'1.ode Island South Carolina Vermont Virginia 216 166 TIC B1tD'.::I-IES ON DECF~,IBER .1.- BY STATES St . 6526 N1.1mber of br.sncbes Number of b:mks o·per3,tin 6 Operated bv l".~~tion branches Outlstate In side head HonTotal NaState NonTotal Na- bank tional rnem- member office H. o. tional mem- members city City bers banks bers banks lt.lJITED STATES O- 180 476 3,547 1,027 1,299 1,221 2,432 1,115 State wide branch banking permitted 7 53 7 37 23 2 12 5 2 12 30 39 11 6 3 3 11 7 39 8 3 5 36 ~ 2 25 2 3 4 3 2 33 5r 0 7 28 1,286 22 853 13 24 124 77 35 57 10 61 526 480 12 8 4 189 12 105 2 8 24 7 26 2 12 11 2 571 10 278 11 12 92 66 7 47 10 38 475 811 318 22 545 10 3 24 68 11 16 56 66 19 49 10 34 g 27 Branches restricted as to loc ·1 .tion Total Georgia Kentucky Louisiana ;fa,ine ?fa.ssachusetts J,;ichigan Mississippi New Jersey lfow York Ohio Pem1 syl vani a Tennessee 581 16 10 42 24 88 62 11 55 106 55 80 32 121 l.( 4 1 151 3 2 6 1 17 11 1 115 32 8 16 9 16 30 19 37 20 17 309 9 4 35 23 55 21 10 18 37 27 47 23 2,207 39 28 106 63 161 439 25 103 722 268 185 68 48~21 10 8 l, 099 624 144 63 60 71 58 24 31 70 82 104 43 1,930 16 25 277 l.(9 57 57 19 63 72 1 33 189 19 43 25 27 309 27 1 26 18 3 27 19 3 5 2 8 1 4 14 35 3 39 463 167 38 6 142 436 1 93 721 235 176 30 23 3 3 24 10 1 33 9 38 Bran_ch bankii:i_g ·prohibited by law* Total Alaba.'1la .\.r:,;:ansas Indiana '.:i n~1e sota ~Tebraska Oregon ·ilasl1ington 7li sconsin 25 5 8 11 1 4 19 1 2 2 3 9 6 6 2 2 1 1 5 9 2 2 1 2 4 3 3 2 8 1 2 4 1 2 2 2 2 1 1 1 1 1 1 3 2 3 6 No br&,ches in operation: 2 11 6 2 1 Colorado, Connecticut, FloriJ.a., Idal10, I lJ. inois, Iovra Kansas, l[issouri, Montana, Nevada, New :,:; exico, Texas, Uta...11., West Yirginia ~rovi sion in ·State .::To branches in operation : 17 6 19.W regarding branch banking New Hampshire, liorth Dakota, Oklahoma, South Dakota , Wyoming >t<J3ranches reported were established prior to :prohibitory legislation . lTOTE: Of the 2,432 branches located in head-office cities, 637 were operated by national banks , 1,163 by state bank members, and 582 by nonmember banks. Of the 1,115 branches located outside head-office cities, 34o were operated by national banks, 136 by state bank members, and 639 by nonmember banks . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis March 3, 1930 Meeting of Committee to study branch and chain banking MR. GOLDE:N-ViEISER: MR. ROUNDS: How do you view the function of this Committee, Mr. Rounds? I assume what the Board has in mind as an objective is to develop such facts as will be useful in an effort to reach a decision as to what type of banking is most likely to prove to be to the public interest. Now, as to how that can be done, th9re are only comparatively few states in this country that per~it state-wide branch banking, and only one or two in which it has been developed on a large scale. I do not suppose we will get a satisfactory picture of branch banking as it has existed in this country. e have seen a good deal during the last two or three years in the development of so-called group or chain banking. I do not think that has been in the nature of an ob- jective along that line - everybody that has gone into group or chain banking • has gone into it as a step in preparation of branch banking, i.e., with the idea of beating the other fellow to it. Banks could be merged and thus start out with a well developed branch system - if and when laws permit it. There may be exceptions to that, but it seems to have been the main motive. Another motive of importance has been the disposition to manipulate bank stocks and to make money through consolidations, without thought, ~erhaps, of the banking question as such at all. For a study of this question, I think we would need to review pretty completely the history of branch banking in Canada and in England and perhaps in one or two other countries. I think we would need to find out what the systems had been; how they function; where they had fallen down - because generally speaking, I think you will find that a great economic change is brought about by the necessity for change - it doesn't just happen. • Then, I think we would need to make a study of how the present system was functioning, with particular reference to the supply of credit made available to the maller communities https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis - P e 2 where branch banks were located; wnether those branche s seemed to be uerform in~ as useful and essentia l a service to their con:mun ities as would be ful'nished by individu al unit banks. I think we will need to aive conside ration to the develop~ ent of organiz ation, i,e., difficu lties of est bli hin sonnel organiz ation compete nt to deal with branch banking on a per- big scale. I think we will need to deal with the difficu lties of supervis ion, compete nt supervis ion of brancn b~~kin thing. - difficu lties of examina tion and that sort of I think we would also need to compare the difficu lties of unit banks in the small commun ities - they are limited in what they can do. there are weaknes ses in management. I think that Small banks do not always have, in fact, frequen tly do not have compete nt management. I suppose thore is a lot more that we can do - but in a general w~ it • eems to be bout the way to begin - in the hope that we can present facts in such a way as to enable somebody to draw conclusi ons as to what is most desirable. Our job is to paint a picture of the pros and cons - all of the elements in favor and against . Sar.11e thing for branch banking . chain and group bankin~ . I have a feeling that should be gone into with com- parison with branch banking . group bankin Tiiere has been a good deal said about Almost sure to reach conclusi on that as between or chain banking and branch banking , branch ban.kin is prefera ble. I do not state it as a conclus ion, but it seems that way. It is largely a problem for research ; a study of bankin banks have written on the subject, and we can learn from them. history . any More recent developm ents in this country can be obtained through first-ha nd inform tion • • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • P GOLD ISER: • CLERK: Ho do you view it, r. Clerk? I think, ho ever, that 1n stati void making inferences that indicate conclu ions • . It seem h ve made a f ct-finding of the tudy to what has 1 d to th t course. pplies to the development in the United States. can o-o for om to e after we And th re we should I think the same thinH I think th t i considerable time to come. The next bout as far tep would be, if e asked to go that far, to reach some conclusion as to what would appear to be a normal development in thi • one cannot orld, w will find the inevitable development th movement in present information ar fact d report on banking in th principal coun- most countries away from independent to branch banking. e 3 As I see the duty that has been delegated to us by the Board, it is a f ct-finding duty. trie e MR. ROUNDS: 0 :ountry. ouldn't you think your fact-finding would go as far to develop whether in ctual operation th branch bank to ttempt eem to be rforming proper function, r nderino- satisfactory service, giving as good 8ll ccount of themselves to the public at lar e as unit ban~a7 MR. CLERK: We have nob sis for comparing relative advantages Md disadv8ll- tages of unit and br8llch banking any place in the here developed to an orld, bee use they have no- ual degree of effectivene s so a to be ble to comp re qualities of the re pective kind of bankin • . GOLDENWEISER: ~ffi. . GOLDENWEISER: LEMING: from it if • Thi e c Co prehensive f ct-finding i Have you anything to say, Mr. Fleming? i f ct-findi "' oommittee. of the territory. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A gre t de 1 of goo et the right tr 11 to work on, and I don't thi be any particular advantage in attemptinu to recolJl!Ilendations. our duty. will c o,n there can et up any definite idea as to I think r. Rounds and Mr. Clerk h ve covered practically 11 I don't see that I can add anything to it at 11. . . Page 4 Have you anything to say, Mr. Smead? MR. GOLDE? ISER: MR. SMEAD: Briefly, yes. I agree with what Mr. Rounds and Mr. Clerk have said, and feel that we are after facts. We must find out the early history of banking in all principal countries of the world. The development of branch banking in those countries up to the present time - and the as it no yste~ of banking exits, and it seems to me that through a procedure of that kind we ill get as much light on toe question as any other way. draw on in this country. our country. We haven't much to Canada is a country that is radically different from A large portion of Canada is more or lees barren territory - no large industries - very sparsely settled, and while branch bankin~ might be . entirely satisfactor y to Canada - this wouldn I t mean that it l90uld be sat is- • factory in this country. There are other countries where conditions and problems are more si=nilar to our own than in Canada, and these will be the countries to study. So far as group and chain banking are concerned, I would like to know whether that type of development has been developed anyw~re in the world, I don•t kno whether it has or not - haven't the slightest idea whether ~ny other country has had experience on that line. I assume they haven't had ex- perience with finance or holding companies - buying banks, making profits. If that 1s true, we can bring it out. MR, ROUNDS: I cgre~ ith everything that has been said by everybody. I also agree thoroughly with the thought that we should not be possessed with the idea of recommending a solution to the problem. I rather expect that as a natural consequence of the study, if it is done with sufficient thoroughnes s, • the desirable course would be obvious, because we probably would get at the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis .,. • . of thi P e 5 develop ent, b ed on experience in oth r countrie . erely stating that the facts, if they are the right on s, I would expect might olution, but I think point to the rt of our job, as I understand it, to don't think it 1 mend tion . I with the :Soard, their own ae to e hould content our elve ume a hen th tizn comes the committee it might be that thy would ish to • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • I t to maker com- r rou h dr ft de ire of h ther the final report should include definite conclu not . • tt with that. ons or • t https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis f https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis inc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10, 1930 or To c•o IH FILES SECTIO AY 2719 O lde 11 I r d tion t t a r c f 11 • r ch ·FIR ST J.: CAPITAL j ..I.. 11,000.000°.9 WALTJ-R W . SMITH , P R ESI D E N T ·- IN Iw I TION...t~:r~ BAN K .,,oNAJ. B"'1i ~ ~ SURPLUS ~5,000,0000. 9 ST.Lo u1 s ,~Io. ! rch 17, 1950 . Mr. J . C. Noell, Asst . Seer t~ry, F Jeral Reserve Bo rd, \ shin on - D. c. _ ___ / !~ I Please ccept my than:cs for your o o~ A oo, ~ a n d copy of the hearing s befor ~ the Cammi ttee on Banking and Currenc y of the House on H. R. 141, 11 Branch, Chain & Group Banking " . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,ith kind reg rds , : rnmaJ.n , Very truly J S. P. 4 / e " LEGR AM FEDER AL RESER VE SYSTE M ' (LEASED WIRE SERVICE) 200 b RECEIVED AT WASHING TON, D. C. Golden weiser l 'asbing ton Has secreta ry-ship branch bankin g commit te~ been settled https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Clerk 144p https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 7, 1930 CIC